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.




Depending on their terms, contingent convertible capital may be treated by regulators either as Additional Tier 1 (AT1) capital, or as Tier 2 (T2) capital.
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.


"Contingent convertible capital securities" is frequently and conveniently abbreviated to "CoCos".


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]]
*[[Capital securities]]
* [[Contingency]]
* [[Contingent]]
*[[Hybrid]]
*[[Hybrid]]
*[[PLAC]]
*[[PONV]]
*[[PONV]]
*[[Primary Loss Absorbing Capital]]  (PLAC)
*[[Principal write down]]
*[[Principal write down]]
*[[Additional Tier 1]]
*[[Tier 2]]
*[[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