You are viewing all posts by, Mark Wightman

head of strategy, Asia Pacific, SunGard's asset management business

8
Apr
2011

CoCoCos, The latest evolution in the convertibles market

Contributor:

The much talked about rise in CoCos or Contingent Convertibles is a way for banks to raise capital and improve Tier 1 capital. These high yielding bonds convert into equity below some trigger linked to worsening financial circumstances, whether that be a specific share price fall, a Basel 2 or 3 (depending on timing) breach in Threshold capital or public sector support. Whilst the terms are not yet standardized, we have seen recent successful issues by Lloyds and Credit Suisse and last week we saw Barclays and HSBC advise on the new Bank of Cyprus structure.... read more