Submitted by ScoreIllustrious952 t3_11w96o4 in wallstreetbets
Brokenthoughts2 t1_jcyl5s9 wrote
Reply to comment by SeemoarAlpha in $CS right now … by ScoreIllustrious952
Yes should be a good read, fixed income is an interesting space. No in contingent convertible bonds the bonds are only converted to equity in certain triggering events as I mentioned earlier, you as a bond holder do not have any conversion rights. It absolutely has a place in tier 1 capital but their risk return profile needs to be reevaluated considering the Swiss madness and CS management’s greed.
Additionally, they can be callable and in practice most cocos are called back after 5/10 years during periods of low interest rates.
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