How the World Bank's pandemic bonds were triggered during COVID-19

The World Bank funds development in the world's poorest countries

Originally called the International Bank for Reconstruction and Development, the World Bank was established in 1944 to assist in rebuilding war-damaged countries and has since grown to finance long-term economic development worldwide.

The COVID-19 pandemic led to a decrease in immunizations in the US and worldwide

Public health funds and resources that were diverted to COVID-19 response reduced efforts to combat polio and vaccinations for polio and other diseases declined during the pandemic, putting more people at risk for polio.

Investing in bonds comes with a few risks

Think: changes in interest rates that impact the bond’s value, or a bond issuer completely defaulting on a loan. There are steps investors can take to lower their initial and future risk when investing in the bond market, such as checking a company's bond rating before investing.

If the US government paid off its debt, it could disrupt the entire bond market, as Treasury bonds are among the most common bonds for investors and the majority of the national debt is in bonds.

Companies sometimes issue corporate bonds to raise capital

These bonds offer investors regular interest payments in addition to the return of the principal amount at maturity. They allow companies to raise capital without losing ownership.

BNPL has 19th-century roots, but the pandemic made it mainstream

The modern BNPL model didn't take off until the COVID-19 pandemic, when consumers were stuck at home and lockdowns forced them to shop online rather than in person. The number of US BNPL loans grew more than tenfold from 2019 (16.8 million) to 2021 (180 million), according to a Consumer Financial Protection Bureau report.

A timeline of major pandemics from 1899–2025

Modern pandemics have been defined by the race between globalization (which increases risk) and the development of new medicines. The Great Influenza epidemic claimed some 50 million lives, and the COVID-19 pandemic killed more than 7 million. In between, diseases like Ebola, cholera, AIDS, and more have devastated communities.

The 1997 Asian financial crisis tested the limits of the rules-based order's financial architecture

When a currency crisis hit Thailand, Indonesia, and South Korea, the IMF allocated $118B in emergency loans. However, the attached conditions were widely criticized for worsening the economic downturn and increasing distrust of Western-led institutions across the Global South.

Bond yields are the returns investors earn from a bond's interest—and they're a key economic barometer.

Investors can buy three main types of bonds: government, corporate, and municipal

Each type has variations of its bond offerings with different interest rates, loan lengths, maturity dates, and terms. Each type also carries its own risks and rewards.

Roughly $5T of stimulus money flooded the economy during the pandemic

Recessions can last anywhere from months to years. To encourage economic growth, governments use policy levers such as lowering interest rates or introducing a stimulus. Economists credit massive stimulus funds for helping the economy quickly recover from a recession during the COVID-19 pandemic.

The federal government pumped $70 billion into transit amidst reduced ridership during the COVID pandemic

When ridership collapsed by 75% in the spring of 2020, Congress sent transit agencies nearly $70B to help them survive. But that money has largely run out, and ridership remains 14-28% below prepandemic levels, leaving many transit systems with large budget deficits.

The 2026 Ebola outbreak in the DRC is spurring new Ebola vaccine development for the Bundibugyo species.

COVID accelerated antibiotic resistance

The COVID-19 pandemic was caused by a virus, and viruses can’t be treated with antibiotics. But recent research finds that COVID patients were given a tremendous amount of antibiotics, contributing to the problem of antibiotic-resistant bacteria. Why? This NPR feature sheds light on an unexpected side effect of the pandemic.

Visualizing the genetics of SARS-CoV-2

The COVID-19 pandemic, caused by the SARS-CoV-2 virus, began with an outbreak in Wuhan, China in December 2019, and rapidly spread worldwide in early 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic, leading to widespread lockdowns, travel restrictions, and economic disruptions.

A novel H1N1 influenza strain sparked a 2009 global pandemic

First detected in Mexico, the 2009 “swine flu” pandemic infected up to 1.4B people worldwide. While mortality rates were lower than earlier pandemics, the outbreak still caused more than 150,000 deaths.

Local governments borrow money for long-term projects by issuing municipal bonds

When a city needs to build a school, a road, or a water treatment plant, it usually issues a municipal bond—borrowing money from investors to be paid back over time. The market for these bonds now exceeds $4T.

Investors collectively owned $28T in US Treasury securities as of 2025.

Sovereign wealth funds in the Middle East and Asia surged after the 2008 financial crisis.

Track how much the US government has spent on bailouts.

The bond market dates back to the 1100s in Venice

In the early 1800s, bonds were used to fund US railroads and canals in Great Britain. “Liberty Bonds” were sold during both World Wars in the 20th century. Learning about the early and modern history of bonds can offer a glimpse into how the modern bond market came to be.

Explaining the collapse of Silicon Valley Bank

In March 2023, Silicon Valley Bank—the nation's 16th largest bank at the time—collapsed after a rapid run on its deposits. Among other factors, the bank had placed more than half of its investments into long-term bonds, leaving it without the necessary cash on hand as its clients, largely start ups, panicked and withdrew their money at the same time. This visualization lays out the timeline and impact of the collapse.

In the aftermath of the 2008 financial crisis, the Fed began a program of quantitative easing

This program injected trillions of dollars of new money into financial markets to stimulate the economy. The move catalyzed an 11-year bull run and was repeated during the pandemic. Experts argue such power could worsen wealth inequality and contribute to bubbles in housing and finance.

How the 1918 pandemic spurred developments in virology and vaccines

This article provides an in-depth historical account of the 1918 Spanish Flu pandemic, including its impact on the global population and how its occurrence spurred significant advancements in the study of viruses—laying the groundwork for the...

The bond market is where bonds and other debt securities are traded

Bonds are fixed-income investments allowing individuals to lend a specific amount of money to a large entity, like a government or corporation, for a set amount of time in return for interest paid out over the life of the loan. The bond market is widely considered a key economic barometer.

During COVID-19, the Fed made drastic moves in attempts to shore up the US economy called quantitative easing

The Fed took an aggressive approach to help the US economy during COVID-19 beyond standard monetary levers, including broad purchases of mortgage-backed securities, Treasury securities, and more.

BlackRock sponsored the Federal Reserve's purchasing of corporate debt through exchange-traded funds during the COVID-19 pandemic, while it simultaneously sold some of its own shares on the secondary market—sparking controversy over potentially unfair advantages.

Vizualize global debt by country

Global debt reached $226T by the end of 2020—the biggest one-year jump since World War II. This graphic compares the debt-to-GDP ratio of various countries.

Treasury bonds, notes, and bills are critical vehicles for the federal government to raise money for public expenses and manage the national debt.

What are baby bonds?

In 2008, Hillary Clinton proposed giving every US newborn a $5,000 government-funded trust, often called a “baby bond,” to help low-income families build long-term wealth. Supporters said it could reduce wealth inequality, while critics argued existing programs like the Child Tax Credit offered similar benefits.

See the evolution of Ebola vaccine and treatment development.

Borrowers were increasingly defaulting on private credit loans as of early 2026

Risks in private credit investing include the industry's lack of transparency and the ability of businesses to borrow more than a bank might allow against their debt. Some borrowers in early 2026, for instance, likely did not expect interest rates to be so high for so long, which could be contributing to an uptick in defaults.

The business models behind vaccines

Watch experts weigh in on the prevailing business models of vaccine production, including how the Covid-19 pandemic has disrupted the industry for good in this 20-minute video from Financial Times.

How COVID-19 brought new investors into the market

With fees removed from the equation and more time at home thanks to pandemic-related lockdowns, Americans who had never bought or sold stocks before started participating in the market. Charles Schwab dubs this cohort “Generation Investor” and notes individuals from all age ranges took part in this phenomenon. Study up here.

Between 2016 and 2023, PE spent more than $200B buying British companies

Between the COVID-19 pandemic and the United Kingdom's official departure from the European Union, the UK's economy struggled to recover. This economic strife led to British companies receiving steadily lower valuations than American companies, prompting a huge increase in PE investment. However, interest rates began increasing in 2022, putting pressure on the numerous leveraged buyout deals that took place between 2020 and 2021.

The pandemic forged new FIRE followers

The FIRE movement gained steam during the pandemic, when some were inspired to clean financial house amid an environment of global economic uncertainty.

Our World in Data's COVID-19 tracker, with global case, death, and vaccination data for every country, though updates to the dataset ended in 2024.

Key moments that shaped the national debt include the Civil War, both World Wars, the 2008 recession, and the COVID-19 pandemic.

Series I bonds are a form of government savings bonds created to shield your investments from inflation

Specifically, I bonds earn interest from both a fixed rate and an inflation rate. This article explains who might benefit from investing in I Bonds—for instance, people seeking to invest savings they do not need to access in the near future.

How did the pandemic affect mental health?

Read this research brief to learn more about why heightened mental health and substance use concerns persist three years after the outbreak of COVID-19. According to a recent survey, the vast majority of American adults view the nation as facing a...

COVID-19's shock to employment rates sparked some economists to fear deflation

COVID-19 simultaneously disrupted the supply chain and the labor market. Since the unemployment rate had hit record highs, some economists were worried that the supply chain would recover before the labor market. If that had happened, businesses would have been producing goods, but no one would have been able to buy them because they wouldn't have the disposable income to do so.

Read about why bans on short selling are a controversial policy

Generally, short selling is legal, but regulations often restrict short positions when a stock has experienced a sharp price decline (more than 10% in one day). However, negative feedback loops in times of financial crisis have given short selling a bad reputation. The government has temporarily banned short selling during previous market downturns—like The Great Recession of 2008 and the early months of the COVID-19 pandemic—but experts argue whether those bans actually improved market stability or just distorted prices.

Visualize $102T of global debt, based on data from the International Monetary Fund's October 2024 outlook.

Why the 1918 flu killed between 50 and 100 million people

The 1918–1920 flu pandemic (once called, incorrectly, the Spanish flu) killed quickly and in huge numbers, with estimates of the global death toll ranging from 50 to 100 million people. Several factors contributed to the high mortality rate: lack of antibiotics, the global disruption of World War I, and more.

In 2020, the league quarantined players in a 'wubble'

When the pandemic hit in 2020, the WNBA delayed the start of their season, choosing to play in a quarantine bubble for a 22-game season. Players choosing to opt in knew the decision wasn't just for them, but for their families. This TNT video explores what it was like for WNBA players to play, practice, and live together for nearly 100 days.

The financial crisis in 2008 had a major impact on many 401(k) plans

Amid the 2008 financial crisis, stocks and bonds cratered as the broader market floundered due to the subprime mortgage crisis. Investors with so-called "target-date" funds—which shift allocations based on the maturation of a fund—shared in the slump, with some funds declining by 20% or more just a year or two away from maturation.

The 1957 and 1968 influenza pandemics caused millions of deaths worldwide

The 1957 H2N2 pandemic spread from East Asia, killing more than 1M globally, while the 1968 H3N2 pandemic began in Hong Kong and caused a similar toll, with both strains rapidly moving across continents.

Are I-Bonds a good investment?

I-Bonds are savings bonds issued by the US government that can help protect savings from inflation. While that sounds positive, I-Bonds have a few disadvantages, too—for instance, these bonds have to be held for at least a year before you can cash out.

We're in the middle of a decadeslong cholera pandemic

In 1961, the world's seventh recorded cholera pandemic started in South Asia, and it has continued through the decades. India and Bangladesh are at particular risk. This pandemic is driven partly by conflict, population displacement, extreme weather, and poor water infrastructure.

Many investment bankers work on IPOs

When a company undertakes an IPO, investment banks often buy many of the organization’s shares directly from the company, in order to sell the shares on the stock market. The bank stands to profit after marking up the shares.