It stands for contingent convertible bond; a bond that can be converted into common stocks only when the share price rises sharply or a specified amount (say 25%), from the date when the bond is issued. Therefore, as long as the bond is not converted into common shares, current diluted earnings per share (EPS) will not be diluted by contingent convertible (CoCo) bonds.

This bond was originally designed to avoid entering the calculation of fully earnings per share. However, recent dilution calculations take into account CoCo bonds.