Contingent convertibles: Banks rebut case for CoCo market triggers

	“Knowing that a trigger might be close to being pulled, and their claims converted, CoCo investors are likely to sit up and take notice” Andrew Haldane, Bank of England

Bank of England executive director of financial stability Andrew Haldane’s recent comments on trigger mechanisms for contingent convertible (CoCo) notes have been met with a chilly response from banks.

In late March, Haldane argued for a reconfiguration of banks’ capital structures, that “would bake-in the benefits of simplicity, robustness and timeliness”.