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
 

Pimco΄s banking expert expects 18 lenders to fail ECB stress test - Capital.gr (press release)

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Pimco΄s banking expert expects 18 lenders to fail ECB stress test
Capital.gr (press release)
Bodereau said he had "quite aggressively" bought banks΄ contingent convertible (coco) bonds over the last three weeks as a result of the sell-off, including those of Lloyds Banking Group (LLOY.L) and Credit Agricole (CAGR.PA). Come Monday, Bodereau ...

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Pimco's banking expert expects 18 lenders to fail ECB stress test - Reuters UK

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Reuters UK

Pimco's banking expert expects 18 lenders to fail ECB stress test
Reuters UK
Bodereau said he had "quite aggressively" bought banks' contingent convertible (coco) bonds over the last three weeks as a result of the sell-off, including those of Lloyds Banking Group (LLOY.L) and Credit Agricole (CAGR.PA). Come Monday, Bodereau ...

and more »
Read more...
 

Pimco's banking expert expects 18 lenders to fail ECB stress test - KFGO

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Pimco's banking expert expects 18 lenders to fail ECB stress test
KFGO
Bodereau said he had "quite aggressively" bought banks' contingent convertible (coco) bonds over the last three weeks as a result of the sell-off, including those of Lloyds Banking Group and Credit Agricole . Come Monday, Bodereau said he expected the ...

and more »
Read more...
 

Pimco's banking expert expects 18 lenders to fail ECB stress test - Daily Press

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Pimco's banking expert expects 18 lenders to fail ECB stress test
Daily Press
LONDON (Reuters) - Fixed income investment firm Pimco's global banking specialist, Philippe Bodereau, expects 18 banks will be seen to have failed the European Central Bank's stress test of 130 regional lenders when results are published by the ECB on ...

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