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Contingent convertibles [CoCos] : a potent instrument for financial reform
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ISBN: 9789814619905 9814619906 9789814619899 9814619892 Year: 2015 Publisher: Singapore World Scientific

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Abstract

Contingent Convertibles (CoCos) represent debt that is subject to being converted automatically into common equity under pre-specified terms of conversion if the chosen regulatory capital ratio falls to a level triggering conversion. CoCos are that subspecies of contingent capital that references regulatory (Basel III) concepts in its triggers. From 2014, trigger points are set by common equity (Common Equity Tier 1 [CET1]) in percent of risk-weighted assets [RWA] or of more complicated measures of total exposure to a variety of risks, particularly credit risk. This is the first comprehensive

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