Hybrid securities provide long term funding for financially sound issuers. The coupon deferral option and their perpetuity offer an issuer flexibility of equity without shareholder dilution. The authors present the case study of Volkswagen (VW) hybrid securities where authors compare the market...

1. Contingent Convertibles Issued by EEA Banks -- 2. CoCo Bonds and Bail-In Mechanism -- 3. The Contingent Convertibles Pricing Models: CoCos Credit Spread Analysis -- 4. Non-EEA Banks’ and Insurers’ CoCos -- 5. Corporate Hybrid Securities and Preferred Shares

The paper examines contagion effect and divergence effect referring to sovereign bond yields. Both effects should be understood as an increase in interdependency among different class of assets as a result of a significant shock. Contagion refers to positive interdependency, while the negative...

The paper is on toxic foreign exchange options problem which occurred in Poland just prior to - and after the outbreak of the recent crisis. Especially Polish enterprises were severely stroke by transactions on fx - and interest rate - derivatives contracted with their banks. Poland was the only...