Publication: The Agency of CoCos: Why Contingent Convertible Bonds Aren’t for Everyone
The Agency of CoCos: Why Contingent Convertible Bonds Aren’t for Everyone
Date
Date
Date
Citations
Goncharenko, R., Ongena, S., & Rauf, A. (2021). The Agency of CoCos: Why Contingent Convertible Bonds Aren’t for Everyone. Journal of Financial Intermediation, 48, 100882. https://doi.org/10.1016/j.jfi.2020.100882
Abstract
Abstract
Abstract
Some regulators grant contingent convertible bonds (CoCos) the status of “going-concern” capital. Theory, however, suggests that CoCos can induce debt overhang, thereby amplifying the leverage ratchet effect. In this paper, we provide empirical evidence consistent with this theory. Our results suggest that banks with more volatile assets (riskier banks) (i) are less likely to issue CoCos, (ii) conditional on having CoCos outstanding are less likely to issue equity, and (iii) prefer issuing equity over CoCos. Since riskier banks suffer
Additional indexing
Creators (Authors)
- Goncharenko, Roman
- Rauf, Asad
Volume
Volume
Volume
Page range/Item number
Page range/Item number
Page range/Item number
Item Type
Item Type
Item Type
In collections
Scope
Scope
Scope
Language
Language
Language
Publication date
Publication date
Publication date
Date available
Date available
Date available
ISSN or e-ISSN
ISSN or e-ISSN
ISSN or e-ISSN
OA Status
OA Status
OA Status
Publisher DOI
Other Identification Number
Other Identification Number
Other Identification Number
Related URLs
Related URLs
Related URLs
Citations
Goncharenko, R., Ongena, S., & Rauf, A. (2021). The Agency of CoCos: Why Contingent Convertible Bonds Aren’t for Everyone. Journal of Financial Intermediation, 48, 100882. https://doi.org/10.1016/j.jfi.2020.100882
