Last year, we asked: “Has the market gone cuckoo for cocos?” Abundant issuance, regulatory backing and investor demand had made contingent convertible bonds – known as cocos – one of the most popular and talked about credit trades.
We recognised the investment opportunities provided by the instruments but were wary of their inherent risks, and remain so. Since then, the market has evolved but is far from mature. Now, we assess how it has changed.
Find out more in the latest issue of Spectrum, our global credit newsletter.