Securities often offered to employees that can be converted from a bond to a stock when the price reaches a point that is set higher than the original strike price (the stock price at time of conversion). The holder has the right to "strike" only when the stock price exceeds the contingency price. The company gains an advantage over traditional convertibles because of the gap between strike price and contingency price.
Related information about contingent convertibles (CoCos):
- Contingent Convertibles (CoCos) Definition | Investopedia
A security similar to a traditional convertible bond in that there is a strike price ( the cost of the stock when the bond converts into stock). What differs is that there ...
- What is contingent convertibles (CoCos)? definition and meaning
Definition of contingent convertibles (CoCos): Securities often offered to employees that can be converted from a bond to a stock when the price reaches a point ...
- Contingent Convertibles - CoCos: Definition from Answers.com
Contingent Convertibles - CoCos A security similar to a traditional convertible bond in that there is a strike price (the cost of the stock when the bond.
- Contingent Convertibles - Deutsche Bank Research
May 23, 2011 ... Contingent convertibles (CoCos): The next generation of subordinated bonds? The term CoCo is used to describe a new type of convertible ...
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A recent proposal to enhance banking stability recommends the use of contingent convertibles (CoCos). Since these hybrid securities are mandatorily converted ...
- Pricing Contingent Convertibles: A Derivatives Approach - SSRN
Jun 10, 2011 ... This article provides an in-depth analysis of the pricing and structuring of contingent convertibles (CoCos). These debt instruments convert into ...
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... to 10% of their risk-weighted assets (RWA) – 3% of this can be in the form of high-strike contingent convertibles (CoCos) and 6% as low-strike instruments.
- Pricing Contingent Convertibles: A Derivatives Approach ...
Mar 18, 2011 ... This article provides an in-depth analysis of pricing and structuring of contingent convertibles (CoCos). These debt instruments convert into the ...