Contingent convertible capital: Difference between revisions

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(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.
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".
 
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 [http://www.bis.org/publ/qtrpdf/r_qt1309f.pdf primer] on CoCos.
The [[BIS]]'s quarterly report of September 2013 has a useful [http://www.bis.org/publ/qtrpdf/r_qt1309f.pdf primer] on CoCos.
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==See also==
==See also==
*[[BIS]]
*[[Additional Tier 1]]
* [[Bank for International Settlements]] (BIS)
*[[Capital]]
*[[Capital]]
*[[Capital adequacy]]
*[[Capital adequacy]]
*[[Capital securities]]
* [[Contingency]]
* [[Contingent]]
*[[Hybrid]]
*[[Hybrid]]
*[[PLAC]]
*[[PONV]]
*[[Primary Loss Absorbing Capital]] (PLAC)
*[[Principal write down]]
*[[Principal write down]]
*[[Tier 2]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]

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.


See also