#coco bonds

[bondevalue]

PTT Launches $ Bond; BBVA Issues First EUR Green CoCo; Braskem Downgraded to Junk - BondEvalue

Fed Winds Down Repo Market Operations After 10 Months | BBVA Raises €1 Billion via First Ever Green CoCo | Brazil's Braskem Downgraded to Fallen Angels

[bondevaluesg-blog]

CoCo Bonds - Bondevlue

Before going into the technicalities of the complex nature of Additional Tier 1 or AT1 CoCo bonds, it is imperative to understand the origination of this unique bond and its place in the financial markets. for more detail visit website

[bondevaluesg-blog]

Understanding Contingent Convertible or CoCo Bonds - BondEvalue

Contingent Convertible Capital Instruments or CoCo bonds are a form of hybrid perpetual securities with characteristics of both fixed income and equity, which can absorb losses when the bank's capital falls below a certain level. These securities can be partially or wholly written-down or converted into equity.

[thedealnewsroom]

CoCo puff? Deutsche Bank’s Cryan tries to calm troops

Shares in Germany's leading lender extend Monday's 9.5% loss.

by Renee Cordes

Deutsche Bank AG CEO John Cryan on Tuesday stepped up his efforts to calm fears about Germany's leading lender with a communique to employees issued after reassurances to investors worried about the institution's ability to service its debt.

In a two-page memo to staff Cryan said the lender "remains absolutely rock-solid, given our strong capital and risk position."

His comments come a day after Deutsche Bank became a lightning rod for global worries about the banking sector, fueled by a CreditSights Inc. report questioning Deutsche Bank's ability to meet its corporate debt obligations amid restructuring costs, litigation charges and tough market conditions.

"It is certainly a weak credit story at the moment," noted CreditSights analyst Simon Adamson, "undermined by the probability of a protracted and painful restructuring period."

The "Deutsche Bank Meltdown" report, as it was headlined, was issued less than two weeks after the lender posted a €6.8 billion ($7.7 billion) net loss for 2015 - its first annual shortfall since the financial crisis hit in 2008 - prompting widespread doubts about its turnaround plans as global markets continue to take a beating.

Deutsche Bank shares were down 4.1% Tuesday afternoon in Frankfurt at €13.34 after a spike earlier in the day. The shares had slumped 9.5% on Monday.

Damage control from the lender started with a statement Monday that it has about €1 billion in capacity to service debt in 2016, enough to cover about €350 million in additional Tier 1 coupons due in April. The bulletin was followed by a statement from CFO Marcus Schenck that its capital position remains strong.

Deutsche Bank estimates its 2017 debt-payment capacity at around €4.3 billion, helped by proceeds from the sale of its entire 19.99% stake in China's Hua Xia Bank Co. to PICC Property and Casualty Co. Ltd., which was agreed late last year.

The planned disposal, for up to €3.7 billion, is part of a strategy to narrow Deutsche Bank's focus and sell assets to shore up capital buffers. The program also includes parting company with Deutsche Postbank AG, the Bonn-based retail lender.

Concerns about Deutsche Bank are not stopping Cryan's ambitions.

In Tuesday's memo he spoke of becoming "the most respected financial services provider across all customer segments in Germany" as well as "the number one bank" for corporate, institutional and fiduciary clients in Europe and the "best foreign bank" in the U.S. and Asia. He said it aims to do that by hiring more people in equity sales and research as well as senior corporate and investment bankers, and investing in client-facing technology.

Cryan became co-CEO on July 1, serving alongside Jürgen Fitschen, who remained after co-CEO Anshu Jain stepped down following investor criticism. Cryan will serve solo from May.