Following the 2008 crisis, Basel III has imposed higher banking capital requirements. To comply with this, banks will have to issue new equity and/or sell some of their assets, which will put pressure on financial markets. To ease such pressure, banks and regulators are wondering whether capital...

Basel III has been agreed to strengthen banks' capital. Raising additional capital in common equity is costly. Banks wonder whether capital can be raised less expensively. To this end, Contingent Convertible (CoCo) bonds have been designed to absorb banks' losses in times of crisis. This paper...

Basel III has been agreed to strengthen banks' capital. Raising additional capital in common equity is costly. Banks wonder whether capital can be raised less expensively. To this end, Contingent Convertible (CoCo) bonds have been designed to absorb banks' losses in times of crisis. This paper...