Hong Kong regulator cautious about CoCos
Despite the popularity of Barclays' recently issued contingent convertible bonds (CoCos) with investors, the Hong Kong Monetary Authority (HKMA) is less convinced and is concerned about their safety, according to Arthur Yuen, deputy chief executive of the HKMA, speaking at a Thomson Reuters conference in Hong Kong.
From January 1, 2013, Basel III requires bank issuance of Tier II capital to be loss-absorbable at the point of non-viability, prompting Barclays to issue a well-oversubscribed CoCo
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