CoCo bond

Contingent Convertible

A convertible bond in which the price of the underlying stock must reach a certain level before conversion is allowed. All convertible bonds have a conversion price, that is, the price one pays in order to exchange the bonds for stocks. Contingent convertible bonds, however, have a second, higher price that the underlying stock must meet before a bondholder is allowed to convert. For example, the conversion price for a convertible bond may be $10 per share, but if the stock price is below $20 per share, the investor may not convert the bond.

CoCo bond

See contingent convertible bond.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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contingent convertible bond

References in periodicals archive ?

By the same token, CoCo bond yields are mainly determined by the instrument's trigger mechanism and the loss-absorption mechanism--that is, whether loss is absorbed through a debt-to-equity conversion, or a write-down in value.

Investors' Trash, Taxpayers' Treasure: The Banco Popular Wipeout and Contingent Convertible Bonds

"CoCo Bond Issuance and Bank Funding Costs." Unpublished manuscript, Columbia Business School.

Using Economic Experiments to Improve Contingent Convertible Capital Bonds

One way to view the temporary bail-in reconversion feature is as the mirror image of a CoCo bond.

A temporary bail-in to stabilize weak eurozone banks

Global Banking News-September 4, 2014--HSBC to launch inaugural CoCo bond

HSBC to launch inaugural CoCo bond

Coco bonds and loans connected to them, indebted households, lost jobs, delayed recovery and lower wages are all part of the persistent fallout from the 'cleansing event' of 2013.

Legal fracas over BoC lances the boil of the old guard

Because it has the capacity to write off the entirety of the debt, a bank can count coco bonds as part of the capital it must hold to satisfy regulators it is stable.

Banks suffer 'mini crisis of confidence'

While detailing its living will to the US Federal Reserve, Credit Suisse said it had a mixture of coco bonds and loss-absorbing bonds known as TLAC.

Credit Suisse issues securities to shore up reserves

Last month, the bank introduced 151 mln new shares that arose from the conversion of company convertible (CoCo) bonds, with only 25 mln CoCo bonds remaining outstanding.

CYPRUS: Hellenic Bank to proceed with rights issue

Credit Suisse has issued CHF6bn of coco bonds to current stockholders and USD2bn (EUR1.5bn) of the hybrid instruments to the public.

-C Suisse to repurchase Tier 1, Tier 2 bonds to boost capital adequacy

The contingent convertible bonds-known as coco bonds will be issued with a future coupon lower than the Tier I notes, Credit Suisse said.

Credit Suisse to raise $6.2b capital

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