Contingent Convertibles (CoCos): Basics
Interactive

Contingent Convertibles (CoCos): Basics

Intuition Publishing
Updated Sep 24, 2020

Contingent convertible bonds (CoCos) can be an alternative form of financing or debt, and convert to equity if certain triggering events occur. We explore how CoCos function, and discuss their advantages and risks. Then we describe the conversion price options that are available to investors in CoCos, and look at some other features of CoCos such as, the conversion amount, the coupon, and the maturity.