Regulatory uncertainty over CoCos hinders banks and credit investors

Hurdles ahead

hurdles-running
Widespread adoption of contingent convertibles faces hurdles

Contingent convertible bonds, or CoCos, were initially met with some scepticism within the financial market, with questions over whether there was a natural investor base for the product. However, the successful public sale of $2 billion of tier 2 convertible bonds by Credit Suisse in February suggests there is demand, at least where strong institutions are involved.

Issuers hope further clarity on the role of CoCos in the future banking regulatory landscape, due before the end of this year

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: