how do cocos differ from convertible bonds 
contingent convertibles cocos and convertible bonds both have a price point that triggers the conversion of the bond into equity or stock however cocos have several triggers while traditional convertible bonds have only one cocos pay higher interest rates than convertible bonds due to their risks they have special options that help banks absorb a capital loss moreover convertible bondholders have priority should the underlying business default cocos are secondary debts issued by banks cocos are used mainly by banks to improve their financial position while corporations use convertible bonds to raise capital 