Meet the new (more mysterious) hybrid capital on the block, says FT Alphaville. It comes courtesy of Dutch agri-lender Rabobank and it differs somewhat to the latest versions of the stuff, in particular Lloyds’ contingent convertibles, or CoCos. Instead of converting into equity in times of crisis, the new securities will be written down by 75 per cent of their face value, with the remaining 25 per cent paid to investors.

This entry was posted by Tracy Alloway on Wednesday, March 10th, 2010 at 9:51 and is featured in The Lunch Wrap (10 Mar 2010) . Tagged with CoCos, Contingent capital, Rabobank, Regulatory capital. Edit this entry.