Browsing by Subject "financial policy"

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    Contingent Convertible Bonds And Public Policy: A New Approach
    (2012-05-14) Pearkes, George
    I investigate financial instruments called contingent convertible bonds (CoCos). CoCos are designed to recapitalize banks during financial crises. Regulation would mandate their issuance. I survey the structure of financial crises and develop a rationale for the instruments, then propose a specific set of characteristics for the bonds. Given those characteristics, I develop a pricing model and explore some implications of a regulatory mandate for their issuance. I conclude by rejecting them as a policy alternative.