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
 

5 Themes for Bond Investing - Morningstar

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5 Themes for Bond Investing
Morningstar
The search for yield is fuelling a growth in the market for bonds with different capital structures – with issuance in hybrid and contingent convertible (CoCo) bonds in particular booming. Corporate hybrids, excluding those issued from banks and ...

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Irish Stock Exchange: GEM Notice - InvestEgate

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LLOYDS BANKING GROUP PLC. USD 1,675,000,000 Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities US539439AG42. Debt Security. This announcement has been issued ...
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Spain: possible impact of Royal Decree-Law 4/2014 on OTC derivative ... - Lexology (registration)

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Spain: possible impact of Royal Decree-Law 4/2014 on OTC derivative ...
Lexology (registration)
On March 7, 2014 the Spanish Government approved the Royal Decree Law 4/2014 adopting urgent measures on debt refinancing and restructuring ("Real Decreto-ley 4/2014, de 7 de marzo, por el que se adoptan medidas urgentes en material de ... 75% of the ...

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Spain: possible impact of Royal Decree-Law 4/2014 on OTC derivative ... - Lexology (registration)

E-mail Print PDF

Spain: possible impact of Royal Decree-Law 4/2014 on OTC derivative ...
Lexology (registration)
On March 7, 2014 the Spanish Government approved the Royal Decree Law 4/2014 adopting urgent measures on debt refinancing and restructuring ("Real Decreto-ley 4/2014, de 7 de marzo, por el que se adoptan medidas urgentes en material de ... 75% of the ...

Read more...
 
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