Having Fun with Coco Bonds

Contingent securities, born in the wake of the global financial crisis, are back in the spotlight following the Cyprus debacle. Contingent convertibles, CoCos for short, are bonds that convert into equity if banks get into capital difficulties. Here is some useful background reading…
Cocos: gamble for yield, Financial Times, 5 Apr 2013
‘Coco of the future’ is banks’ destiny, Financial Times, 28 Mar 2013
Why CoCos are dangerous to our system of finance, John Plender, Financial Times, 24 Mar 2010
The sweet fix of CoCos? Gillian Tett, Financial Times, 12 Nov 2009
CoCo nuts, The Economist, 5 Nov 2009