A trigger point that occurs when the capital ratio of a bank (issuer of CoCo bonds) falls below a specific contractual threshold. The accounting trigger, by nature, is based on accounting figures and accounting ratios, which tend to often lag economic values. Therefore, CoCo bonds (CoCo debt) that are based on an accounting trigger (rather than market reality) may not convert until it is too late. For the same reason, accounting triggers are largely backward looking.

Alternatively, the so-called market trigger is often used as it incorporates information already reflected in market prices. Unlike most accounting ratios, market prices incorporate current market reality and specific future expectations- hence so are forward looking.