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
 

Agency Costs of A Bail-In And CoCo Bonds Risk - ValueWalk

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Agency Costs of A Bail-In And CoCo Bonds Risk
ValueWalk
A new study, “Agency Costs of a Bail-In,” points to a new “in-vogue” investment, “CoCo bonds,” or Contingent Convertible bonds, being marketed to institutions and high net worth individuals that, while appealing to yield hungry investors, might be ...

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Unilever: 2014 First Half Year Results - Wall Street Journal

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Unilever: 2014 First Half Year Results
Wall Street Journal
On 19 May 2014 Unilever purchased for GBP715 million the rights left in trusts by the first Viscount Leverhulme which were convertible in 2038 into 70,875,000 Unilever PLC ordinary shares. This increased diluted earnings per share ... On 19 March 2014 ...

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Nokia Oyj - Correction: Nokia Corporation Interim Report for Q2 2014 and ... - Wall Street Journal

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Nokia Oyj - Correction: Nokia Corporation Interim Report for Q2 2014 and ...
Wall Street Journal
In connection with the completion of the transaction the EUR 1.5 billion Microsoft convertible bonds were repaid. .... could result in allowances related to deferred tax assets; 13) our ability to manage our manufacturing, service creation and delivery ...

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Nokia Oyj - Nokia Corporation Interim Report for Q2 2014 and January-June 2014 - Wall Street Journal

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Nokia Oyj - Nokia Corporation Interim Report for Q2 2014 and January-June 2014
Wall Street Journal
In connection with the completion of the transaction the EUR 1.5 billion Microsoft convertible bonds were repaid. .... could result in allowances related to deferred tax assets; 13) our ability to manage our manufacturing, service creation and delivery ...

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