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CoCo

From the Collaborative Bond and Money Market Data Portal .

In the Collaborative Bond and Money Market Data Model the attribute Conv._Single_Stock appears in the field Structure.

'CoCo' is short for Contingent Convertible bond which is a debt instrument used mainly by European financial institutions. Like vanilla convertible bonds, CoCos have several trigger events which can lead to the bond being converted into equity such as the bank's capital falling below the regulatory requirement, the bank's equity passing a predetermined strike price or due to demands made by the regulatory authorities. 

CoCos became a popular funding instrument in the post-GFC era when the Basel III framework tightened capital requirements. Tier 1 capital, the highest rated on bank balance sheets available to absorb losses, included retained earning and common stock. CoCos were also accepted as additional Tier 1. This allows banks to continue to issue debt while remaining well capitalised.

Based on available data, on the 1st of January, 2023 the size of Convertible Single Stock debt capital market was USD691bn equivalent, with 4794 trades. .

For information on issues in attribute Debt Capital Market, please use CMDportal's instrument search tool.
For information on the size of the attribute Debt Capital Market, please use CMDportal's data sheet tool.
For information on the composition of the attribute  Debt Capital Market, please use CMDportal's issuer search tool.
For information on active dealers in the attribute Debt Capital Market, please use CMDportal's dealer search tool.
For information on active investors in the attribute  Debt Capital Market, please use CMDportal's investor search tool.

Related Terms

Subordinated Ranking, Capital Requirements, Tier 1 Subordinated Ranking.