Since their launch in 2009, Contingent Convertible bonds — or CoCos — have grown into a mature, liquid market that plays a critical role in bank capital structures. The post-crisis regulatory framework took time to stabilize, but once banks standardized issuance and investors adapted to new rules, CoCos established themselves as a permanent feature of the financial landscape.
Candriam has long been recognised for its leadership in ESG, but our reputation is equally rooted in deep credit expertise — analysing not just issuers, but the entire architecture of financial markets. This perspective is particularly critical in complex areas such as bank capital, where instruments like CoCos play a decisive role.
Credit expertise in action
Our Subordinated Financials (“Sub Fins”) strategy is designed to put that expertise to work. By combining thorough fundamental research with tactical opportunities across CoCos, Tier 2 bonds and related instruments, we seek to capture the nuances of relative value in a disciplined way.
A closer look at CoCos
We extend our credit framework to CoCos by comparing instruments across the capital structure, interpreting market signals, and drawing on deep experience in bank capital. The approach has worked in practice, reflected in the results. The following pages detail exactly why.
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