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Knock-on effect of DoJ fine is a likely diluting of shareholdings for the lender’s existing investors
German lender’s coco bonds have been hurt by fears US authorities will impose a big fine
Country’s largest bank sells $300m of contingent capital, missing expectations of $500m
Yield, dollar demand and regulation bolster strong sales of new bonds, but liquidity concerns remain
Singapore bank’s cost is half that of European rivals as investors scramble for yield
Coco bonds look better than bank shares
Central banks should be pushing ahead with monetary stimulus
Investors are asked to calculate the value of a bank’s capital and speculate on regulatory actions
Some executives are uneasy over rules surrounding contingent convertible bonds
Bankers say hybrid securities could undermine a lender’s financial position in a crisis
Swiss bank draws $8bn of orders for $1.5bn AT1 issue
From Dr Jan De Spiegeleer and Dr Wim Schoutens, University of Leuven, Belgium
Hybrid securities have the upside of bonds and the downside of equity
Anxiety about these loss-absorbing bonds is misplaced, they are serving the system well
Questions on eurozone banks’ ability to make coupons
Deutsche, Santander and UniCredit bonds fall to fresh lows in price
Revised capital requirements will phase out a type of bank contingent convertible bonds
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