Contingent convertibles (CoCos) are debt securities that can be converted into a company's common stock. They offer high returns but come with high risk.
A contingent convertible bond ( CoCo ), also known as an enhanced capital note ( ECN ), is a fixed-income instrument that is convertible into equity if a pre-specified trigger event occurs. The concept of CoCo has been particularly discussed in the context of crisis management in the banki...
PDF | Convertible Contingent Bonds are important financial instruments for the stability of the banking and financial system in general. The role of... | Find, read and cite all the research you ne...
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We study the role of contingent convertible bonds (CoCos) in a complex network of interconnected banks. By studying the system’s phase transitions, we reveal that the structure of the interbank net...
Most regulators grant contingent convertible bonds (CoCos) the status of equity. The theory, however, suggests that these securities can distort incentives via inducing debt overhang and risk shift...
Jeremy Schwartz speaks with Professor Dr. Wim Schoutens on the recent happenings in the contingent convertible (Coco) bond market and what it means for the EU markets going forward.
We assess the impact of contingent convertible (CoCo) bonds and the wealth transfers they imply conditional on conversion on the risk-taking behaviour of the issuing bank. We also test for regulato...
Convertible bonds are most often issued by companies with a low credit rating and high growth... Contingent convertibles Contingent convertibles are a variation of the mandatory...
↑ 해외에서는 주로 은행의 규제자본으로서 논의되어 오던 코코본드가 한국에서는 2013년 자본시장법의 개정에 따라 일반기업의 자본조달수단으로 먼저 도입되었다. 그 후 2016년 3월 은행법의 개정으로 조건부자본증권의 발행근거가 마련됨에 따라 코코본드는 은행들이 자본을 늘리고 건전성을 제고할 수 있는 수단으로 적극 이용되고 있다.