The Unconvertible CoCo Bonds

Open Access
Authors
Publication date 2018
Host editors
  • D.D. Evanoff
  • G.G. Kaufman
  • A. Leonello
  • S. Manganelli
Book title Achieving Financial Stability: Challenges to Prudential Regulation
ISBN
  • 9789813223394
ISBN (electronic)
  • 9789813223417
Series World Scientific Studies in International Economics, 61
Pages (from-to) 317-329
Publisher Singapore: World Scientific
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
  • Faculty of Economics and Business (FEB)
Abstract The original concept of a CoCo (contingent convertible) bond was to act as a precommitted equity injection upon bank distress. Its intellectual foundation (Flannery 2005; Kashyap et al., 2008) was to induce conversion as “going concern,” ensuring de-leveraging at the most delicate moment, when default risk is heightened and risk-taking incentives highest…
Document type Chapter
Language English
Published at https://doi.org/10.1142/9789813223400_0023
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