Contingent convertible bonds (CoCos) are the latest bank capital instruments advocated by the Basel Committee on Banking Supervision and many national bank regulators. CoCos are intended to reduce banks' reliance on government bailouts and have been extensively issued by banks worldwide since...

Following the 2008-9 financial crisis, large banks increasingly issued contingent convertible bonds (CoCo bonds) to increase their capital buffers – a policy supported by national bank regulators. This paper examines whether the issuance of CoCo bonds provides the same reduction in bank...