The agency of CoCos: Why contingent convertible bonds are not for everyone
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DOI: 10.1016/j.jfi.2020.100882
Abstract: Abstract Some regulators grant contingent convertible bonds (CoCos) the status of “going-concern” capital. Theory, however, suggests that CoCos can induce debt overhang, thereby amplifying the leverage ratchet effect. In this paper, we provide empirical evidence… read more here.
Keywords: bonds everyone; cocos contingent; agency cocos; contingent convertible ... See more keywords