Tag: cocos

Where is the truth?   Regulators on both sides of the Atlantic agreed to introduce Contingent Convertible bonds (“CoCos”) following the big financial crisis as a way to strengthen banks’ capital levels and transfer the risk of a bank failing from governments to bondholders, thus preventing taxpayer bailouts. CoCos are…

Bank stocks have been falling over growth fears. That eventually started to catch up with additional Tier 1 securities. Deutsche Bank’s are particularly vulnerable because of the firm’s weak profitability, relatively low capital and uncertainty over German AT1 accounting idiosyncrasies. But they’re not the only poster boys for the meltdown.…