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
 

Fitch Rates Bombardier's Planned Debt 'B+'/'RR4'; Rating Outlook Negative - Rock Hill Herald (press release)

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Fitch Rates Bombardier's Planned Debt 'B+'/'RR4'; Rating Outlook Negative
Rock Hill Herald (press release)
CHICAGO — Fitch Ratings has assigned a rating of 'B+'/'RR4' to Bombardier Inc.'s (BBD) planned issuance of US$1.5 billion or more of senior unsecured notes. The Rating Outlook is Negative. A full list of BBD's ratings follows at the end of this release.

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High Short Interest Stocks A Good Bet? - Seeking Alpha (registration)

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High Short Interest Stocks A Good Bet?
Seeking Alpha (registration)
Value weighted portfolios would make short position size contingent on market cap where as equal weighted portfolios equally weight their position sizes (like the above example). So one can infer that since value weighted portfolios don't underperform ...

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Envestnet Reports Fourth Quarter 2014 Financial Results - Rock Hill Herald (press release)

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Envestnet Reports Fourth Quarter 2014 Financial Results
Rock Hill Herald (press release)
CHICAGO — Envestnet (NYSE:ENV), a leading provider of unified wealth management technology and services to financial advisors, today reported financial results for its fourth quarter and full year ended December 31, 2014.

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FRO - Fourth Quarter and Full Year 2014 Results - MarketWatch

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FRO - Fourth Quarter and Full Year 2014 Results
MarketWatch
In October 2014, the Company bought $17.8 million notional principal of its 4.50% Convertible Bond Issue 2010/2015 at a purchase price of 91.654%. - In October and December 2014, the Company entered into private ... Contingent rental expense represents ...
Frontline reports loss of $162.9 million for 2014Hellenic Shipping News Worldwide

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