Contingent convertible capital: Difference between revisions
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imported>Doug Williamson (Add links.) |
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==See also== | ==See also== | ||
*[[Additional Tier 1]] | |||
* [[Bank for International Settlements]] (BIS) | * [[Bank for International Settlements]] (BIS) | ||
*[[Capital]] | *[[Capital]] | ||
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*[[Primary Loss Absorbing Capital]] (PLAC) | *[[Primary Loss Absorbing Capital]] (PLAC) | ||
*[[Principal write down]] | *[[Principal write down]] | ||
*[[Tier 2]] | *[[Tier 2]] | ||
Latest revision as of 09:36, 28 September 2022
(CoCos.)
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.
Depending on its terms, contingent convertible capital may be treated by regulators either as Additional Tier 1 (AT1) capital, or as Tier 2 (T2) capital.
The BIS's quarterly report of September 2013 has a useful primer on CoCos.
