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Tier 1 capital: Difference between revisions
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But is that really true? | But is that really true? | ||
{{Image|Coco performance|png|From the pooch’s mouth: cocos really are better than equity. Over time.}} | |||
{{Image|Coco performance| | |||
The panel above illustrates our best guess of the cumulative shareholder return — the diminishing cash dividends paid plus ongoing share price, which was in of course in insistent decline over 5 years — compared with the cumulative AT1 return, which are those much fatter, fixed coupons plus the AT1s’ market value, which we just made up, on the premise that until things got truly dire, it would have been somewhere near par. they were vaporised. | The panel above illustrates our best guess of the cumulative shareholder return — the diminishing cash dividends paid plus ongoing share price, which was in of course in insistent decline over 5 years — compared with the cumulative AT1 return, which are those much fatter, fixed coupons plus the AT1s’ market value, which we just made up, on the premise that until things got truly dire, it would have been somewhere near par. they were vaporised. | ||