CoCos are similar to trust preferred debt that community banks in the U.S. stuffed balance sheets with in the early 2000s. While trust preferred was debt, the terms were so liberal, banking regulators allowed banks to count the debt as equity.
All tagged Deutsche Bank
The Hits Keep Coming for Deutsche Bank
At the end of last year, Deutsche’s U.S. operations had $7.3 billion of equity supporting $148 billion of assets, or 20 to 1 leverage. Then there is the derivatives exposure of $50 trillion (with a T).