Contingent convertible bond

How it is used

Often called a CoCo; read its trigger and loss mechanism rather than assuming ordinary voluntary conversion.

Example sentences

1. The contingent convertible bond specified a capital-ratio trigger.

   A defined event activates the instrument's loss-absorption mechanism.

2. The prospectus explained the write-down terms of the contingent convertible bond.

   Some instruments absorb loss through a write-down rather than share delivery.

Common collocations

• contingent convertible bond trigger
• CoCo loss absorption

Related terms

• capitalMoney and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.
• bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.

More terms: Corporate Finance

• cash flow
• working capital
• leverage
• dividend
• valuation
• M&A
• IPO
• due diligence
• shareholder
• raise capital
• issue
• leasing