Contingent Convertibles

and more

  • Increase font size
  • Default font size
  • Decrease font size
Welcome to CoCoBonds.com
E-mail Print PDF

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
 

FCA ignores banks' pleas and pushes ahead with broad data request - Reuters

E-mail Print PDF

FCA ignores banks' pleas and pushes ahead with broad data request
Reuters
Some of the areas where reciprocity has been suspected include the markets for contingent convertible and covered bonds, both of which are only issued by banks. Before the CoCo market got going in earnest, most borrowes used their own investment banks ...

and more »
Read more...
 

NKBM Bank, From Restructuring to Privatisation - STA - Slovenska Tiskovna Agencija (subscription)

E-mail Print PDF

NKBM Bank, From Restructuring to Privatisation
STA - Slovenska Tiskovna Agencija (subscription)
20 December 2012 - The European Commission provisionally clears a EUR 100m recapitalisation of NKBM with contingent convertible bonds. The bonds are eventually converted to equity, giving the state near-100% ownership. 7 March 2013 - NKBM reports ...

and more »
Read more...
 

CalAmp Reports Fiscal 2016 First Quarter Financial Results - MarketWatch

E-mail Print PDF

CalAmp Reports Fiscal 2016 First Quarter Financial Results
MarketWatch
In addition, during the first quarter the Company completed a private offering of $172.5 million of 1.625% Convertible Senior Notes due 2020 (the "Convertible Notes"), including simultaneous bond hedge and warrant transactions, with net proceeds of ...

and more »
Read more...
 

Willis Tower owner merging with Towers Watson in $18 billion deal - Chicago Sun-Times

E-mail Print PDF

Chicago Sun-Times

Willis Tower owner merging with Towers Watson in $18 billion deal
Chicago Sun-Times
The deal is not contingent on Willis shareholders approving the reverse stock split. Towers Watson ... Bond prices rose sharply as investors sought safety. The yield on the .... Mr. Roper owned a red convertible '67 Corvair with a white top ...

and more »
Read more...
 
  • «
  •  Start 
  •  Prev 
  •  1 
  •  2 
  •  3 
  •  Next 
  •  End 
  • »


Page 1 of 3

Polls

Do you think that CoCo Bonds will become standard hybrid securities?
 

Who's Online

We have 3 guests online