In that case, how about a derivative that is a bit like a credit default swap, but it's a sort of legal compliance swap? If a company follows the law, the issuer pays you a modest coupon, but if the company breaks the law, you have to pay the issuer a large indemnity.
You might even find ready counterparties amongst firms that do business with the company in question, or law firms who take them on on a retainer basis.
I unironically quite like this idea. Now, who do i know at an investment bank?
It would be a bit like a pandemic bond:
https://www.iii.org/insuranceindustryblog/pandemic-catastrop...
You might even find ready counterparties amongst firms that do business with the company in question, or law firms who take them on on a retainer basis.
I unironically quite like this idea. Now, who do i know at an investment bank?