| From WSJ: Credit Suisse has demonstrated that there may be a market for co-cos among sovereign wealth funds, hedge funds and even retail investors. But this is unlikely to be enough to absorb the issuance that might be needed across the banking industry to replace outstanding hybrids.
Credit Suisse is testing the water with a public issue of Tier 2 co-co notes. It will be key to watch whether institutional investors like insurance companies, big buyers of traditional hybrids, will be willing or able to buy co-cos under the terms of their mandates—and then whether they will buy co-cos from second-tier banks that don't have highly profitable private banking divisions..............................................Full Article: Source
|