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Over $250 Billion in Bonds Are at Risk

The current banking crisis has affected a wide range of firms, including some of the largest on the planet. And in the turmoil, some formally ‘good as gold’ assets are now looking pretty shaky. That includes more than $250 billion worth of bonds issued by European banks.

While many investors may not be familiar with Contingent Convertibles or CoCo bonds, the asset type has formed the backbone of capital ratios for the European banking sector since the Great Recession. With recent moves and emergency buyout deals, the validity of these bonds is now in question.

For investors, the wipe-out of CoCo bonds brings forth a variety of questions and concerns about their holdings and whether or not other bank debt could be at risk.

Don’t forget to check our Fixed Income Channel to learn more about generating income in the current market conditions.

CoCos in a Nutshell

UBS & Credit Suisse Throw Cold Water on CoCo Market

Big Ramifications

Something to Think About