Brokerage and Contingent convertible capital: Difference between pages

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1.
(CoCos.)


The service of acting as a broker.
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.




2.
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.


Fees receivable and payable for acting as a broker.


The [[BIS]]'s quarterly report of September 2013 has a useful [http://www.bis.org/publ/qtrpdf/r_qt1309f.pdf primer] on CoCos.


3.


An institution or business unit which provides prime brokerage services.
==See also==
 
* [[Bank for International Settlements]]  (BIS)
 
*[[Capital]]
== See also ==
*[[Capital adequacy]]
* [[Broker]]
*[[Capital securities]]
* [[Prime brokerage]]
* [[Contingency]]
* [[Private client broker]]
* [[Contingent]]
* [[Retail broker]]
*[[Hybrid]]
*[[PONV]]
*[[Primary Loss Absorbing Capital]] (PLAC)
*[[Principal write down]]
*[[Additional Tier 1]]
*[[Tier 2]]


[[Category:The_business_context]]
[[Category:The_business_context]]
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[[Category:Investment]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Revision as of 20:39, 10 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