Contingent convertible bonds allow banks to skip interest payments without defaulting,and can be converted to shares or written down if a bank runs into financial difficultiesWorries about Deutsche Bank’s financial position sent its shares tumbling earlier this week and achieve the highlight on so-called CoCo bonds, a financial instrument which has only existed for around three years.
What is a CoCo bond? Related: Deutsche boss tells staff the bank is 'rock solid' as shares slide Continue reading...
Source: theguardian.com