CoCo Nuts Have Been Hammered, but the Market Is Doing Just Fine (Benn Steil, Emma Smith, CFR)

Anxiety over whether Deutsche Bank would suspend interest payments on its contingent convertible bonds, otherwise known as CoCos, fueled a February selloff in the $250 billion market – as well as in bank shares broadly. While Deutsche Bank has insisted that it will have no difficulty making interest payments, yields on CoCo bonds remain well above their levels at the start of the year – as shown in the graphic above.

http://blogs.cfr.org/geographics/2016/03/03/cocobonds/