Credit Suisse Said to Study Novel Bond Sale

The transcript discusses a Bloomberg report on Credit Suisse's potential issuance of catastrophe bonds, typically used by insurance companies, to cover risks like cybersecurity crimes and rogue trading. The conversation highlights the hefty risk premiums in the market for entities lacking robust controls, especially in cyberspace. It also explores how investment banks might adapt to changing M&A activities and the distinction between managing rogue traders and external cyber threats. The discussion concludes with an analysis of the potential benefits of such bonds in quantifying and limiting risks.

What are the implications of rogue trading for investment banks?

In what ways can companies prepare for potential cyber crimes?