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Abstract Major international financial institutions (FIs) are using contingent convertible (CoCo) bonds in the wake of the 2008 financial crisis to meet stricter national and international capital requirements. Beginning with… Click to show full abstract
Abstract Major international financial institutions (FIs) are using contingent convertible (CoCo) bonds in the wake of the 2008 financial crisis to meet stricter national and international capital requirements. Beginning with UniCredit's €500 m 9.375% CoCo in July 2010, more than 40 publicly held financial institutions headquartered in 16 countries have issued 68 CoCos. According to SP however, the investors’ reactions vary in a country-by-country analysis. These different reactions create opportunity for investors and issuers to launch global diversification and trading strategies.
Journal Title: Finance Research Letters
Year Published: 2017
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