Why higher interest rates could be good news for CoCos

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In this blog, we delve into an intriguing comparison that uncovers the intricate interplay between high interest rates and contingent convertible bonds (CoCos), acknowledging the dynamics governing credit spreads and CoCos spreads as we enter the uncharted territory of the highest interest rates since the inception of CoCos. Factors such as market sentiment, market volatility, macroeconomic shifts, geopolitical events, and regulatory winds contribute to this complex puzzle.  

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