A new study on contingent convertible (coco) bonds was published in the Journal of Financial Intermediation. Coco bonds are fixed income instruments which, under specific circumstances, can be converted into equity. They were introduced to reduce risk in the banking sector. The authors (Prof. Tobias Berg and Prof. Christoph Kaserer) show that these instruments, if poorly designed, can actually increase the issuer's risk. The full press statment can be found here.