Swiss Re’s daring total wipeout Coco raises hackles
Some investors complained bitterly. But Swiss Re’s permanent writedown contingent capital issue this week was a hit with plenty of others, writes Will Caiger-Smith. With a $5.25bn book, the deal broke new ground in loss-absorbing insurance capital.
However, market participants warned that investors putting their principles
aside and their principal at risk in search of yield were in danger of setting racy precedents in a nascent market.
Cocos have found favour with some regulators, who are considering allowing banks to use them to fill
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