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 Authoritys 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
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