Eating your own Coco February 11, 2014 at 11:12 pm
Dealbreaker catches a deeply amusing story from the WSJ:
banks including the U.K.’s Barclays PLC, Germany’s Deutsche Bank AG and Switzerland’s UBS AG could shore up their U.S. subsidiaries… the U.S. units would issue to their parents a type of bond that converts into equity if the U.S. business’s capital falls below a certain level… The European parent companies would finance the purchases of their subsidiaries’ debt by issuing bonds to investors, these people say.
Coco double leverage: very cool. But not very chocolatey, sadly. You can call it an internal convertible if you must. I’m gonna call it something else…