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Contingent convertible securities: Difference between revisions
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{{aai|fwmd|}} | {{aai|fwmd|}}{{D|/kənˈtɪnʤənt kənˈvɜːtəbᵊl sɪˈkjʊərətiz/|n}} | ||
A subordinated debt instrument which is not common equity, but is sufficiently ''like'' it, in certain moods, that it can be treated as additional tier 1 capital. It has shapeshifting feature of being able to turn into common equity if ''la merde frappe le ventilateur'' | |||
Come in two kinds: one which, if the tier one equity trigger is struck, get mixed in with the other common equity holders (these we call call “coco powder”) and the other which, if struck, get cancelled altogether (“coco pops”). | |||
the latter caused quite the brouhahah in March 2023 when [[Credit Suisse]]’s coco pops popped, even though their common equity holders still got paid. | |||