Who will corner the huge emerging market for Basel III-toughened securities?
Everyone in the City, it seems, agrees that the demand will be huge – but who will service it? The demand in question is the rapid development of a new generation of securities designed to allow banks to bolster their financial strength under the new Basel III standards. Linklaters last week secured bragging rights after taking a lead role on Credit Suisse’s much-touted $8bn (£4.9bn) issue of contingent conversion capital instrument notes (dubbed CoCos) – a new form of convertible bond designed to switch to equity if the issuing bank suffers agreed levels of financial stress.
