或有可转换债券（Convertible bonds）.docVIP

或有可转换债券（Convertible bonds） Convertible bonds Definition Or convertible bonds (contingent, convertible, bonds, abbreviated as CoCo) is a bond that can be converted to equity under a predetermined trigger condition. Characteristic 1. or convertible bonds is a hybrid bonds capital (hybrid), which has dual characteristics of equity capital and debt instruments. Therefore, from the point of view of the supplementary capital adequacy ratio, or convertible bonds are also known as contingent bonds capital. 2. or two important elements of convertible bonds are: conversion trigger conditions and conversion prices. Or the conversion of the convertible bond trigger condition usually means that the bond issuer or deterioration of operation in a crisis state, once the debt into equity, bond issuers will reduce the debt burden of the capital adequacy ratio of natural push helps issuers to resume normal operations. The market generally believes that the conversion of the convertible bond or trigger conditions must be market-oriented, observable and transparent information such as credit default swap prices reached a certain level, the core tier one capital or reach a certain minimum regulatory standards. At present, the price of convertible bonds for or convertible bonds has not been clearly specified, may be pre-set or can be determined at the time of conversion. In the contingent capital proposal, it is explicitly stated that the timing of the convertible price can be either convertible or at issue time. origin Or convertible bonds are proposed as a solution to the too big to fail program and the self-help measures of financial institutions in the process of rethinking the subprime financial crisis. In the process of coping with the financial crisis, many countries are actually using taxpayers money to help those who are still on the verge of bankruptcy of executive compensation payment of large bank bailout is not only in the scale of There was no parallel in history. political