CoCos
COCOS - Also known as contingent convertible bonds, cocos are a type of bond that converts into stock if the strength of the issuing bank worsens. Investors want the bank to maintain its health or to get stronger, so that they can keep getting their interest payments and eventual repayment of principal.

What the Heck is a CoCo?

  CoCos – aka contingent convertible bonds – are issued by big banks like Barclays, Deutsche Bank, and UBS.  They are sold to investors and are sometimes used in lieu […]