Global CoCo Bonds Rebound to Levels Before Credit Suisse Crisis
- Quick action by regulators to contain contagion eased concern
- JPMorgan’s Dimon warned US banking crisis to be felt for years
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Contingent convertible bonds issued by banks have rebounded from the market-wide losses inflicted by the terms of Credit Suisse Group AG’s rescue, another sign that stress from the recent financial turmoil is subsiding.
The Bloomberg Global CoCo Banking Statistics Index, a dollar-based gauge of such lender debt, rose on Tuesday to its highest since March 16. That was before all of Credit Suisse’s CoCo debt was wiped out as part of a state-led rescue, which then spurred widespread panic selling of the instruments.