Solactive has partnered up with Axiom AI to launch an index on global contingent convertible bonds (Cocos). The German index provider sees potential for the benchmark to be used in the structured products space.
The Solactive AXI Liquid Contingent Capital Global Market TR Index aims to track highly liquid coco bonds denominated in euros and US dollars, and with a high credit rating. The index represents more than 30 issuers from the financial sector. It aims to meet growing investor demand on higher returns amid a low interest rate environment. "Driven by the inherent conversion risk of coco bonds, these instruments offer a higher yield when compared to other fixed income instruments while keeping a hi
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