Contingent convertible bond

A contingent convertible bond (CoCo), also known as an enhanced capital note (ECN),[1] is a fixed-income instrument that is convertible into equity if a pre-specified trigger event occurs.[2] The concept of CoCo has been particularly discussed in the context of crisis management in the banking industry.[3] It has been also emerging as an alternative way for keeping solvency in the insurance industry.[citation needed]

  1. ^ "Fixed Income Investments". Archived from the original on 2016-01-31. Retrieved 2016-01-31.
  2. ^ Pazarbasioglu et al. (2011), p. 4
  3. ^ Albul, Jaffee & Tchistyi (2010), p. 4