As the recent financial crisis unfolded, a new financial instrument—contingent convertible
(coco) bonds—was widely considered as a mechanism for promptly recapitalizing …

Finance Capital Today is shortlisted for the The Isaac and Tamara Deutscher Memorial Prize
2017. Finance Capital Today presents a rich new analysis of the specific features of …

The second edition of an essential text on the microeconomic foundations of banking
surveys the latest research in banking theory, with new material that covers recent …

New bank equity must come from somewhere. In general equilibrium, raising bank capital
requirements means either that banks produce less short‐term debt (as debt holders must …

Corporate limited liability makes firms' shareholders under-value the possibility that their
actions will have extremely bad outcomes. This distortion has been particularly relevant for …

The promise of contingent convertible capital securities (CoCos) as a” bail-in” solution has
been the subject of considerable theoretical analysis and debate, but little is known about …

This paper provides a formal model of contingent convertible bonds (CCBs), a new
instrument offering potential value as a component of corporate capital structures for all …

Between 2006 and 2008, several US financial institutions either failed or had to be rescued
with public funds. 1 Most of the US Treasury's financial sector interventions were funded by …

This paper introduces and analyzes a new form of contingent convertible: a call option
enhanced reverse convertible (COERC). If an issuing bank's market value of capital …

Abstract Contingent Convertible (CoCo) bonds are subject to a considerable theoretical and
practical debate. This article presents a systematic literature survey from five databases …