Cyber attacks are seen pushing up risk premiums for stocks

The growing risk of cyberattacks comes as the pandemic forces more people to work from home and use networks that may be vulnerable to online attacks. — Reuters

US equity investors are demanding higher risk premiums to compensate for rising cyber threats as the coronavirus pandemic pushes more businesses to move online.

That’s according to researchers at Michigan State University who found that funds adjust their positions according to the "cyber riskiness” of holdings, especially when data breaches are high. Hackers prefer larger and more visible companies with big customer bases and data sets, especially in industries including retail, services and finance, their research shows.