Brokerage and Contingent convertible capital: Difference between pages
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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. | |||
"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. | |||
==See also== | |||
*[[BIS]] | |||
*[[Capital]] | |||
== See also == | *[[Capital adequacy]] | ||
* [[ | *[[Capital securities]] | ||
* [[ | *[[Hybrid]] | ||
* [[ | *[[PLAC]] | ||
*[[PONV]] | |||
[[ | *[[Principal write down]] | ||
[[ | *[[Additional Tier 1]] | ||
[[ | *[[Tier 2]] | ||
[[ | |||
[[ | |||
Revision as of 15:08, 11 November 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.
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 primer on CoCos.
