Contingent Convertibles

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Welcome to CoCoBonds.com
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This site is intended to be an information platform on contingent capital ("CoCo") bonds and related issues. Although we like to call them capital insurance bonds as they fulfill more of an insurance function.

Capital insurance bonds are debt instruments with the special feature that they will convert mandatorily in ordinary shares or similar instruments of the relevant issuer, mostly banks, when one or more triggers are met. Such a trigger could be for example reaching a certain threshold in the required capital ratio of the bank. In this aspect capital insurance bonds resemble more catastrophe bonds (more on cat bonds under www.HedgeFund-Lawyer.com) than convertible bonds. However, as an emerging asset class there are still no clear market standards visible.

The main purpose of capital insurance bonds is to increase a bank's capital in times of distress. Until then, or if the trigger is never met, capital insurance bonds are normal debt instruments which can count to a bank's core cpital (provided the relevant regulator approves it). Nevertheless, there may be times when a bank will not be obliged to pay interest and forgoe the relevant interest payment, in particular when not sufficient distributable profits have been earned.

We recommend you start by viewing our resources:

  • check out our BookShop for literature on the contingent capital solutions
  • click on our Resources link to learn more

Or you can just read our news on relevant issues.

Please visit also our sponsor www.HedgeFund-Lawyer.com and subscribe to our RSS newsfeed.

Last Updated on Monday, 09 November 2009 23:56
 

Meet the 2014 Rising Stars of Asset Management - Financial News

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Meet the 2014 Rising Stars of Asset Management
Financial News
After joining Axa's Paris office in 2010, he helped launch the Axa World Funds Universal Inflation Bond, a total return inflation-linked bond fund that he now manages. In the past 12 months, his fund has nearly doubled its assets to around $240 million ...

and more »
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GLAC, a term you'll need to become familiar with after the summer - The Corner Economic

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GLAC, a term you'll need to become familiar with after the summer
The Corner Economic
That is why they talk about contingent bonds, as in contingent convertible bonds or CoCos. In its 2011 proposal-document, Basel honestly acknowledged the complicated case of the GLAC debts. For starters, they are new instruments so they have not been ...

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Meet the 2014 Rising Stars of Asset Management - Financial News

E-mail Print PDF

Meet the 2014 Rising Stars of Asset Management
Financial News
After joining Axa's Paris office in 2010, he helped launch the Axa World Funds Universal Inflation Bond, a total return inflation-linked bond fund that he now manages. In the past 12 months, his fund has nearly doubled its assets to around $240 million ...

and more »
Read more...
 

Miner NWR averts insolvency as bondholders back rescue plan - Yahoo Finance UK

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Miner NWR averts insolvency as bondholders back rescue plan
Yahoo Finance UK
Holders of the 275 million 2021 unsecured bonds will get 25 cents on the euro of bonds worth a nominal 120 million euros, and will be issued 35 million in new convertible bonds and 35 million in contingent rights, an instrument that will be paid in ...

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