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Barclays has sold its second issue of contingent capital notes, or cocos.
Barclays has sold its second issue of contingent capital notes, or cocos.
(TOBY MELVILLE/REUTERS)

Financial Times

High-yielding cocos up the risk ante

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For bank investors – and depositors – the stakes keep rising. Barclays has sold its second issue of contingent capital notes. These are the latest iteration of the so-called cocos that have emerged after the financial crisis as banks have sought ways to boost their capital (as if to underscore that point, the Barclays deal was taking shape as the U.K.’s Financial Policy Committee said last week that the nation’s banks faced a capital shortfall of £25-billion [$39-billion]).