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’The CoCo cap – a mere €150bn?
The CoCo death spiral is the process by which the expectation of a swathe of bank-issued Contingent Convertible (CoCo) debt converting into equity can exacerbate share price declines.
Or more specifically,
Credit Suisse’s $6.2bn Swiss finish
Credit Suisse says it just gave the latent CoCo market a $6.2bn shot in the arm.
On Monday morning the Swiss bank announced it would issue Chf 6bn ($6.2bn) of Contingent Convertible securities — or debt that will convert into equity once a certain trigger is reached.
CoCos can cost – your bonus
Here’s a data point for those skeptical of CoCo capital’s saving graces.
(CoCos, or contingent convertible capital, are a kind of convertible bond that automatically switch into equity once certain capital or bailout triggers are breached.)
Earlier this week Switzerland moved to make CoCos a key element of future bank capital,
That’s a big bowl of (Swiss bank) CoCos
Presenting the Credit Suisse cuckoo-for-CoCos roadshow…
[July 22 Q2 2010 earnings call transcript] We are encouraged by what seems to be an increased consensus among policymakers on contingent capital securities,
Flipping the capital structure || erutcurts latipac eht gnippilF
Spotted late on Thursday — one massive change for banks’ capital structures appearing just on the horizon.
The Basel Committee published a 20-page consultative document on loss absorption in capital instruments — something that’s (finally) gaining some serious regulatory attention after the recent financial crisis.
Basel gives good CoCo
Basel goes bank CoCo nuts. Or as the Basel Committee has put it more, ah, soberly:
The Basel Committee is of the view that all regulatory capital instruments must be capable of absorbing a loss at least in gone-concern situations.
A CoCo Cashbox
Let’s get CoCorporate lawyer-y (sorry).
In recent weeks, FT Alphaville has become intimately familiar with the concept of CoCos, or contingent convertibles. We shall now turn to the mechanics of the actual capital structure (joy).
The CoCo indexing conundrum
How confusing is this?
LONDON, Nov 11 (Reuters) – Bank of America Merrill Lynch reversed its position for a second time on Wednesday to decide its bond indexes would not include new contingent capital securities,
Cuckoo for CoCos
Fresh off the London Stock Exchange, more Lloyds CoCos (that’s Contingent Convertibles) for everyone:
EXCHANGE OFFERS – MAXIMUM ECN NEW ISSUE AMOUNTS
On 3 November 2009, Lloyds Banking Group plc (“Lloyds”) announced two Exchange Offers relating to certain Existing Securities for Enhanced Capital Notes guaranteed by Lloyds or Lloyds TSB Bank plc,
I should not have CoCo-ed?
As outlined in our criteria, we do not consider contingent capital securities to be a form of common equity. We can include them as hybrid equity depending on their exact features. If the conversion trigger is set at a level that we think would lead to a conversion occurring too late,