Hong Kong regulator cautious about CoCos
The HKMA is unconvinced about banks issuing contingent convertible instruments, according to Arthur Yuen, deputy chief executive of the HKMA
Despite the popularity of Barclays' recently issued contingent convertible bonds (CoCos) with investors, the Hong Kong Monetary Authority (HKMA) is less convinced and is concerned about their safety, according to Arthur Yuen, deputy chief executive of the HKMA, speaking at a Thomson Reuters conference in Hong Kong today.
From January 1, 2013, Basel III requires bank issuance of Tier II capital to be loss-absorbable at the point of non-viability, prompting Barclays to issue a hugely
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