Minimum Requirements for Cocos to be Included in Regulatory Capital and for Getting an S&P Investment-Grade Rating

24 Pages Posted: 25 Aug 2012 Last revised: 28 Aug 2012

Date Written: August 23, 2012

Abstract

The following excerpts are taken from Basel Committee on Banking Supervision (BCBS), European Banking Authority (EBA), and Standard and Poor's (S&P) publications. They are intended to show the wide discretion which regulators demand over the interest payments and conversion of cocos and the equity-like features they impose on them already from the time they are issued. These regulatory requirements are not compatible with an investment-grade rating by S&P.

Keywords: Cocos, Contingent Convertible Debt Securities, Regulatory Capital

JEL Classification: G2, G3

Suggested Citation

von Furstenberg, George M., Minimum Requirements for Cocos to be Included in Regulatory Capital and for Getting an S&P Investment-Grade Rating (August 23, 2012). Available at SSRN: https://ssrn.com/abstract=2135146 or http://dx.doi.org/10.2139/ssrn.2135146

George M. Von Furstenberg (Contact Author)

Indiana University ( email )

Department of Economics
Wylie Hall, Indiana University
Bloomington, IN 47405-6620
United States
812-856-1382 (Phone)
812-855-3736 (Fax)

HOME PAGE: http://mypage.iu.edu/~vonfurst/

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