"The Whys and Hows of CoCo Issuance"

Charles Calomiris, Richard Herring

© Central Banking Journal, May 2011

Publication type: Web-only article

Research Archive Topic: Business Economics and Public Policy, Corporate Finance

Abstract

Though the regulatory landscape post-crisis remains far from fixed, contingent capital, or CoCos, appear likely to form part of policymakers' toolkits. There is undoubtedly widespread support from regulators the world over to have instruments that can be converted from debt to equity at times of financial market stress. Yet there is little consensus as to what the trigger for conversion should be.

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