In 2012, regulatory changes following the financial crisis mean that barclays bank is faced with the requirement to raise considerable amounts of capital to be able to comply with increased capital requirements, tightening rules concerning the "quality of capital," and increased risk weights for its capital markets assets. The bank is considering offering contingent capital bonds, which may act like debt during "normal times" but would convert to create capital should the bank hit a "triggering event." how should these instruments be designed? Can they be attractive for investors and for the bank?
PUBLICATION DATE: January 31, 2014 PRODUCT #: 214063-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING