Understanding Contingent Convertible Securities: A Primer

Thu May 12 14:29:00 EDT 2016
Erin B. McHugh, CFA

What is a contingent convertible security (“CoCo”)?

In a new white paper, NERA Associate Director Erin B. McHugh examines this relatively new type of hybrid financial instrument with characteristics of debt and equity. These securities—generally issued by banks—are designed to absorb issuer losses during a period of financial stress, with the benefit of improving its capital position.

Read Ms. McHugh’s article to learn more about CoCos.