On the Propensity to Issue Contingent Convertible (CoCo) Bonds
34 Pages Posted: 19 Jan 2017 Last revised: 7 Dec 2017
Date Written: December 6, 2017
In this paper we analyze the determinants of CoCo bond issuance. The results suggest that banks who issue CoCos are typically large. Moreover, in the case of BRICS and other emerging economies suggest that banks are also highly leveraged, aiming to meet the Basel III rules and replace debt with equity funding. Also, we find tax incentives evidence for CoCo bond emision in UK. Finally, we study the subsample of Global systemically important banks nding similar results.
Keywords: Continget Convertible, Debt, Financial Distress, Bail-In
JEL Classification: G21, G28, G01
Suggested Citation: Suggested Citation