Cyber ‘Catastrophe Bonds’ Move Step Closer to Hitting Public Debt Markets

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.