Swiss Reinsurance Company Ltd (SSREY) plans to hold a series of investor meetings before launching a so-called contingent capital bond transaction, one of the banks mandated to arrange the roadshow said Thursday.
Contingent capital bonds, or CoCos, is debt that converts into equity, or loses its value, if the financial institution issuing it breaches a predetermined level of capital. This type of security is riskier for investors than more typical bonds but has higher returns.
CoCos provide financial institutions with an extra funding cushion, helping them to reach adequate reserve capital levels as required by worldwide regulation.
Bank of America Merrill Lynch, BNP Paribas, Credit Suisse, HSBC and Royal Bank of Scotland will be arranging investor meetings for Swiss Re.
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