What is a CoCo bond?

Author: | Published: 12 Nov 2009

Contingent convertible bonds (CoCo bonds) have caused a surge of interest this week, with the exchange offer by Lloyds Banking Group bringing the instruments into the spotlight.

But contingent convertible bonds have been popular in the US market for years. The first was launched by Tyco in 2000, and was structured to avoid the dilution of earnings per...