Since the 2008 financial crisis, banking regulators have focused on permitting important financial institutions to issue their own alternative debt instruments, in order to meet their capital requirements. Among these alternatives are so-called contingent convertible capital securities (CoCos), which institutions can issue to investors as bonds, provided that they’ll convert into equity if the institution fails to meet a given capital ratio. In a new policy analysis, Robert A. Eisenbeis evaluates CoCos and shows that, so far, they haven’t achieved their intended purpose. Indeed, U.S. regulators should approach CoCos with skepticism and caution.
The Democratic Party is long overdue for a serious, substantive debate over the objectives and tools of trade policy. Making a play for the center on trade would be the outcome that best serves the party and the country.
A long-festering issue affecting the entire U.S. border on the north, south, east, and west is finally getting congressional attention: the so-called “100-mile border zone” that has existed under regulation for more than 50 years.
