Cocos set for comeback as banks ponder recap strategies

27 Oct 2011

Contingent capital could be set for a comeback after European leaders gave the instruments a boost in their Grand Plan announced on Thursday. But FIG specialists say banks will look at a range of routes to meet the new capital requirements — which come alongside a reminder that this should be achieved without compromising lending to the real economy (see separate story for coverage of individual banks' capital requirements).

The European Banking Authority’s requirement that the 70 biggest financial institutions reach a 9% core capital ratio was largely expected — but the fact that banks could use Cocos to do so was not. But bankers are wary of predicting a major return of the asset class that ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: or find out more online here.