Markets Go Loco for CoCos Once Thought Only So-So

Contingent convertible bonds are back.

The Deutsche Bank AG logo sits on the bank's skyscraper headquarter offices in Frankfurt.

Martin Leissl/Bloomberg

It's been a roller coaster six months for investors in bank debt. At the beginning of the year, the market for contingent convertible bonds, known as CoCos, seized up, imperiling the post-crisis effort to resolve banks without recourse to taxpayer funds.

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