Abstract
The central theme of this book is one financial instrument called a contingent convertible bond or CoCo. CoCo bonds are issued by financial institutions such as banks and (re-)insurance companies. Due to their loss-absorption mechanism, they play an important role in the new regulation guidelines after the financial crisis of 2007–2008. A CoCo bond contains an automatically loss absorption mechanism in times of crisis. This can avoid the use of taxpayers’ money to save a falling financial institution in a crisis.
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Notes
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According to Art 128 (6) CRD.
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According to Art 129 CRD.
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According to Art 130, 135-140 CRD.
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According to Art 133-134 CRD.
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According to Art 131-132 CRD.
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Described in Art 141(2) to 141(10) of the CRD Directive 2013/36/EU.
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De Spiegeleer, J., Marquet, I., Schoutens, W. (2018). A Primer on Contingent Convertible (CoCo) Bonds. In: The Risk Management of Contingent Convertible (CoCo) Bonds. SpringerBriefs in Finance. Springer, Cham. https://doi.org/10.1007/978-3-030-01824-5_1
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DOI: https://doi.org/10.1007/978-3-030-01824-5_1
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Publisher Name: Springer, Cham
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Online ISBN: 978-3-030-01824-5
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