Basel Mulls CoCos Use To Meet Surcharge

The Basel Committee on Banking Supervision is considering allowing banks deemed too big to fail to use contingent convertible bonds (CoCos) to meet a capital surcharge imposed on them beyond other new cash requirements, reports Bloomberg.

The Basel Committee on Banking Supervision is considering allowing banks deemed too big to fail to use contingent convertible bonds (CoCos) to meet a capital surcharge imposed on them beyond other new cash requirements. Lars Frisell, chief economist of the Swedish Financial Supervisory Authority and a Basel member, said CoCos will play a role, though it has not yet been decided to what extent.

Click here to read the story from Bloomberg.