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
 

Permanent TSB could raise as much as €400m in new share sale - Irish Independent

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Irish Independent

Permanent TSB could raise as much as €400m in new share sale
Irish Independent
The lender has said it has already covered more than 80pc of the €855m capital shortfall identified during the stress tests, including using a €400m government loan that is already sitting on its balance sheet as contingent convertible bonds. ECB ...
PTSB share sale bids to raise €400mIrish Examiner

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Permanent TSB Said to Weigh Up to $491 Million Share Sale - Bloomberg

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Permanent TSB Said to Weigh Up to $491 Million Share Sale
Bloomberg
The lender has said it has already covered more than 80 percent of a 855 million-euro capital hole found in the tests with 400 million euros of state-owned contingent convertible bonds and by shrinking its balance sheet this year. ECB supervisors last ...

and more »
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PTSB share sale bids to raise €400m - Irish Examiner

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PTSB share sale bids to raise €400m
Irish Examiner
... October to assess market demand for a share sale. The lender has said it has already covered more than 80% of an €855m capital hole found in the tests with €400m of state-owned contingent convertible bonds and by shrinking its balance sheet this year.

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BGC Partners Inc.: BGC Partners Updates Its Outlook for the Fourth Quarter of ... - The Wall Street Transcript

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BGC Partners Inc.: BGC Partners Updates Its Outlook for the Fourth Quarter of ...
The Wall Street Transcript
To make quarter-to-quarter comparisons more meaningful, one-quarter of the annual contingent earn-out amount will be included in the Company's calculation of distributable earnings each quarter as "other revenues." ... The fully diluted share count ...

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