It would not be right to claim that contingent convertibles
, henceforth cocos, are so familiar as to need no introduction.
5m) of cash via a contingent convertible
bond issue, in a move to help the loss-making bank improve its capital ahead of the tie-up.
Should banks be unable to fund themselves, Spain's bank restructuring fund (FROB) will provide capital or contingent convertible
shares (which can be converted to equity if capital falls below a certain level) to banks, who will pay around 10% interest on the loans.
The bank also plans to pay some of its staff bonuses in contingent convertible
bonds, known as "cocos", which some investors think are too generous.
Credit Suisse's (NYSE: CS) plan to sell contingent convertible
bonds (CoCos) has been opposed by a shareholder group, Ethos Foundation.
Earlier in the month, Qatar Holding, a unit of QIA, invested in contingent convertible
bonds issued by Credit Suisse .
Chief executive Bob Diamond is considering paying a large proportion of bonuses in special contingent convertible
bonds that are effectively worthless if the bank runs into trouble, newspaper reports said.
Second quarter highlights also included the retirement of the approximately $50 million aggregate principal amount of 4 percent contingent convertible
International Resource News-21 May 2008-Chesapeake Energy Prices Contingent Convertible
Senior Notes Offering(C)2008 ENPublishing - http://www.
6 billion bond issue--including a $4 billion chunk of so-called contingent convertible
bonds that will reinforce its pension plan--guys in the green eyeshades asked themselves: Is this a way to slay the pension monster?
As a result, the interest deduction on a contingent convertible
is much higher than that of a regular convertible instrument.
Fitch Solutions, a division of the Fitch Group, says in a new pricing methodology paper on contingent convertible
bonds (CoCos) that, for instruments with low capital ratio conversion triggers, the impact of systemic risk on pricing could be much larger than that suggested by current CoCo pricing approaches.
75% Contingent Convertible
Senior Notes due 2035 (the "Notes"), of which an aggregate principal amount of approximately $2.
The ANZ Capital Securities take the form of perpetual subordinated contingent convertible
securities issued by ANZ's London Branch and constitute Additional Tier 1 capital for ANZ.
The exact mix of shares and contingent convertible
bonds the HFSF will buy from banks in exchange for any fresh funds it will provide will be decided by the cabinet.