Coco clarity at last but liability management the key for banks

09 Dec 2011

Debt exchanges have become crucial for financial institutions after the European Banking Authority on Thursday night laid down stringent rules on how Europe’s 70 largest lenders are to source the €115bn they need to meet the EU’s 9% temporary core capital ratio by next June.

While these include a contingent capital instrument, few banks that fall short of 9% will be able to issue Cocos outright, capital structurers judged.

"The banks which will need it are the ones that have a shortfall to the 9% target, but whose core tier one ratios are ...

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