Bundesbank reveals existential fears about CoCos
The Bundesbank has expressed profound concern about whether the contingent convertible capital securities (CoCos) issued by banks can absorb losses effectively and fulfil their intended purpose.
Authors of the German central bank’s monthly report for March 2018 wrote about a number of perceived flaws in CoCo products, which are otherwise referred to as additional tier one (AT1) bonds in Europe.In common with concerns voiced by a number of bank capital investors, ...
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