Risk Europe: no-go on CoCos, says panel

A stop-no-go sign

Banks will struggle to raise much capital through issuance of so-called contingent convertibles (CoCos) - bonds that convert into equity when a bank is under pressure - according to panellists at Risk Europe's Basel III summit in Brussels this afternoon, with one comparing them to "snake oil". One CoCo issuer even voiced fears the debt could actually increase pressure on a bank.

But the main objection was that traditional investors would see the bonds as too risky. "Widows and orphans should not

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: