CoCos: Attractive yields from investment-grade bank issuers

The arrival of a new asset class in financial markets is a rare event. Many “new products” are repackaged versions of existing products, dressed up as a potential new addition to portfolios.

However, the global financial crisis significantly changed the financial landscape and out of this traumatic experience a new form of bank capital, called Contingent Capital (CoCos), was designed, creating what we believe is a new, diversifying asset class.

After the substantial injection of capital into the global banking system by every government in the developed world post the collapse of Lehmans, regulators and politicians wanted to ensure that taxpayers would never again be called upon to bail out the banking system.

Read the complete white paper at the link beneath Related Files

Supporting documents

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