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
 

FMA warning on bank capital notes welcome, but much more can be done to ... - Interest.co.nz

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FMA warning on bank capital notes welcome, but much more can be done to ...
Interest.co.nz
Last August the FCA put in place temporary rules restricting the retail distribution of what are known as contingent convertible securities, or CoCos, over there. These rules came into force on October 1 last year and are due to expire on October 1 ...

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Munich Re with dividend payout of almost ... - The FINANCIAL

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Munich Re with dividend payout of almost ...
The FINANCIAL
An authorisation valid until 22 April 2020 to issue convertible bonds, bonds with warrants, profit participation rights and corresponding contingent capital. The authorisation replaces an existing financing framework in the same volume. The same ...

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Meeting the Demand for More Agile and Mobile Content: Digital Solutions in ... - Publishers Weekly

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Meeting the Demand for More Agile and Mobile Content: Digital Solutions in ...
Publishers Weekly
With mobile solutions facilitating learning on the go and semantics adding meaning to content, “the bond between content and technology has gone beyond digital access,” observes assistant v-p for marketing and pre-sales Uday Majithia of Impelsys ...

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Mitra Energy Inc. Closes RTO Transaction - Marketwired (press release)

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Mitra Energy Inc. Closes RTO Transaction
Marketwired (press release)
Concurrent with the closing of the Acquisition, the Company acquired all of the outstanding convertible bonds of the Target, other than the bonds already held by the Company, in exchange for common shares of the Company. ... Mitra has discovered ...

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