Tuesday, 22 July 2014
Last updated 7 hours ago
Mar 9 2011 | 11:09am ET
Algebris Investments has teamed up with an Italian bank to launch a new fund investing in the latest investment craze, contingent convertible bonds.
Davide Serra, head of Algebris, noted that some €1 trillion worth of so-called "CoCos" will be issued by banks over the next several years. The bonds are designed to help banks meet stricter new capital ratio requirements, and convert to equity if a bank's capital ratio falls below a set threshold.
The new Duemme CoCo Credit Fund is a joint venture of Algebris and Banca Esperia, in which Mediobanca owns a 50% stake. The two firms said their skill in the "correct determining of pricing could represent an important factor of extra return."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…