CoCo Reverse Convertible

Banking
Designer CD
April 14, 2021
Derivatives
Credit Event Cash Settlement
April 14, 2021

It stands for contingent coupon reverse convertible; a reverse convertible in which the coupon is made contingent on a specific event such as trading in a range in order to have an enhanced coupon. The reverse convertible will pay higher than usual coupon when the specified event takes place. Otherwise, its coupon remains unchanged and the convertible continues as a normal reverse convertible.

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