Breakingviews

Uber flips the bird at critics with convertible

December 5, 2014

The taxi app’s valuation soared to $40 bln in its latest funding round. But a plan to issue securities that convert to stock at a discount to an IPO shows how firmly Travis Kalanick remains in the driver’s seat. Uber can raise money at a potentially massive premium.

VW relaunches mandatory convertible market

November 6, 2012

The German carmaker’s 2.5 bln euro issue is the biggest for a while. The deal immediately alleviates pressure on its credit rating, and is less costly than placing shares today. Other issuers with comparable equity stories may follow.

Not so coo-coo for CoCos

November 12, 2009

Regulators love them and investment banks are busy trying to craft what would be the first significant investment product since the credit crisis, but bond investors are right to be skeptical about contingent capital, affectionately known as CoCos.

The hurdles of bank contingent capital

October 26, 2009

Federal Reserve is getting serious about convertible debt. Well, sort of.