Contingent Convertible Bonds, Corporate Hybrid Securities and Preferred Shares: Instruments, Regulation, Management

Description

This book is a comprehensive guide to the new generation of hybrid securities: subordinated and perpetual bonds with deferrable coupon first issued around 2003, and the youngest member of the hybrids family named CoCos (contingent convertibles) being a product of Basel III or European Union CRD IV regime (2014). Contingent capital constitutes a contractual recapitalization mechanism for troubled financial institutions. An increasing number of European banks have issued CoCo bonds in order to bolster their capital ratios. Following the EU pattern, CoCos issues have become increasingly popular within banks in Asia and the Pacific. The EU regulatory treatment of the contingent convertibles issued by banks and insurers together with bank bail-in instruments is at the forefront of the book. Furthermore, the book provides an overview of hybrids pricing and risk assessment approach and covers the non-voting preferred stocks as another hybrids class. Front Matter ....Pages i-xix Contingent Convertibles Issued by EEA Banks (Marcin Liberadzki, Kamil Liberadzki)....Pages 1-82 CoCo Bonds and Bail-in Mechanism (Marcin Liberadzki, Kamil Liberadzki)....Pages 83-121 The Contingent Convertibles Pricing Models: CoCos Credit Spread Analysis (Marcin Liberadzki, Kamil Liberadzki)....Pages 123-148 Non-EEA Banks’ and Insurers’ CoCos (Marcin Liberadzki, Kamil Liberadzki)....Pages 149-165 Corporate Hybrid Securities and Preferred Shares (Marcin Liberadzki, Kamil Liberadzki)....Pages 167-210 Back Matter ....Pages 211-229