Contingent convertible bond
Type of financial instrument / From Wikipedia, the free encyclopedia
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See also: Convertible bond
A contingent convertible bond (CoCo), also known as an enhanced capital note (ECN),[1] is a fixed-income instrument that is convertible into equity if a pre-specified trigger event occurs.[2] The concept of CoCo has been particularly discussed in the context of crisis management in the banking industry.[3] It has been also emerging as an alternative way for keeping solvency in the insurance industry.[citation needed]