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
 

Athex: August was a month, hard to forget - Capital.gr (press release)

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Athex: August was a month, hard to forget
Capital.gr (press release)
On the news front, according to capital.gr, the recap framework as prepared by the Bank of Greece΄s for the new round of bank recapitalization framework may include a combination of instruments, namely common equity and contingent convertible bonds.

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`Brilliantly Marketed' Banks in Sweden Can't Kill CoCo Doubts - Bloomberg

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`Brilliantly Marketed' Banks in Sweden Can't Kill CoCo Doubts
Bloomberg
Bid-yields-to-call on Handelsbanken's 5.25 percent bond are about 5.6 percent, while Nordea's 5.25 percent security is returning roughly 6.2 percent, according to data compiled by Bloomberg. That compares with 6.4 percent for DNB's 5.75 percent ...

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Form 6-K CHINA SOUTHERN AIRLINES For: Aug 31 - StreetInsider.com

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Form 6-K CHINA SOUTHERN AIRLINES For: Aug 31
StreetInsider.com
During the reporting period, the Company did not have any issued or outstanding preference shares and convertible bonds. IX. During the .... Details of contingent liabilities of the Group are set out in note 24 of the financial statements prepared ...

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PWC Capital Inc. Announces Results for Its Third Quarter Ended July 31, 2015 - MarketWatch

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PWC Capital Inc. Announces Results for Its Third Quarter Ended July 31, 2015
MarketWatch
During the current year, the Bank issued 1,681,320 Non-Cumulative 6-Year Rate Reset Series 3 Non-Viability Contingent Capital (NVCC) Preferred Shares for net proceeds of $15.7 million. For the initial ..... As these Class B Preferred Shares carry ...

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