Contingent convertible capital: Difference between revisions
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Contingent convertible capital is made up of hybrid capital securities that, through a conversion mechanism, provide | Contingent convertible capital is made up of hybrid capital securities that, through a conversion mechanism, provide additional capital available to absorb losses when the capital of the issuing institution falls below a certain level. They are generally used by banks in meeting regulatory capital requirements. | ||
"Contingent convertible capital securities" is frequently and conveniently abbreviated to "CoCos". | "Contingent convertible capital securities" is frequently and conveniently abbreviated to "CoCos". | ||
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==See also== | ==See also== | ||
*[[BIS]] | |||
*[[Capital]] | *[[Capital]] | ||
*[[Capital adequacy]] | *[[Capital adequacy]] | ||
*[[Hybrid]] | |||
*[[PLAC]] | |||
*[[Principal write down]] | |||
Revision as of 14:33, 13 August 2016
Contingent convertible capital is made up of hybrid capital securities that, through a conversion mechanism, provide additional capital available to absorb losses when the capital of the issuing institution falls below a certain level. They are generally used by banks in meeting regulatory capital requirements.
"Contingent convertible capital securities" is frequently and conveniently abbreviated to "CoCos".
The BIS's quarterly report of September 2013 has a useful primer on CoCos.
