ESG & Investing
Cyber ‘Catastrophe Bonds’ Move Step Closer to Hitting Public Debt Markets
- Beazley, Axis are said to be preparing new bond issuances
- Investors face double-digit returns, but unknowable risks
This article is for subscribers only.
Cyber catastrophe bonds may be about to move out of the shadows of private deal-making and into the public debt markets.
So-called cat bonds, which farm out hard-to-insure risks to capital market investors in exchange for double-digit returns, have typically been built around natural disasters such as hurricanes. But as the potential fallout of business-halting cyberattacks becomes too big to insure, issuers are seizing the moment.