It has not been a good few weeks for the CoCo bond. In late April, The Economist newspaper declared that, nine years after the first bonds were issued, they have not fulfilled their promise.
“The idea that CoCos would help struggling banks recapitalize seems far-fetched,” they say, describing them as a niche investment. “This is quite a comedown for an asset class once touted as an elegant, almost automatic way to return struggling banks to health.
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