AT1 CoCos of strong European banks offer an attractive pick-up and a good risk-reward because intense regulation over the past years meaningfully de-risked European banks, which now hold more and better capital and are ultimately better equipped to handle an eventual crisis. We see the main risks to CoCo investors, loss absorption and coupon deferability, as remote given higher capital and excess liquidity will remain as the top priorities at European Banks.
Press & Articles

Monthly Commentary – July 2023 Climate Bond
Sentiment remained strong in July, as the theme of disinflation coupled with a soft landing made a comeback. Spreads on ...

Monthly Commentary – July 2023 USD
Sentiment was strong in July. The theme of disinflation coupled with a soft landing made a comeback during the month ...