Bloomberg published the article on September 29 that featured the research of van Wijnbergen and Chan on ‘Coco’s’ in their paper entitled ‘Cocos, Contagion and Systematic Risk’.
‘CoCo’s (contingent convertible capital) are designed to convert from debt to equity when banks need it most. This study argues that the systemic risks of using contingent convertible capital are being neglected. Please download van Wijnbergen-Chan’s discussion paper on ‘Cocos, Contagion and Systematic Risk’ here .