Because contingent-capital bonds offer few advantages over traditional capital securities, banks might rein in CoCo issuance, CreditSights analysts say. "When these were thought up, the idea of impairing bonds before a collapse was pretty much unthinkable," said Simon Adamson of CreditSights. "These days, instruments like these don't seem so different because most bank securities are going to be subject to some form of bail-in."

Full Story:

Related Summaries