The rise of CoCo issuance continues…

CoCo bond issuance

We suspect there has been some indiscriminate buying of CoCos as investors have been attracted by the high coupons. We believe CoCos are mispriced and therefore fundamental credit analysis is key. Some fixed income investors may not appreciate the risks associated with CoCos as these bonds have blurred the lines between bonds and equities.

April LaRusse, Insight Investment



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