CoCo bonds throw up regulatory questions

Author: | Published: 12 Nov 2009

Lloyds Banking Group’s exchange offer for new contingent convertible (CoCo bonds) has been popular with investors, but important regulatory questions must be tackled before the instrument can take off in the UK.

As part of a capital raising that also involves a £13.5 billion rights issue, the Lloyds exchange offer has attracted attention because the initial debt instruments that underlie the structure are lower Tier 2...