RBNZ decides on Kiwibank cocos - uh oh
No surprise here: the RBNZ decided to render two cocos ineligible for regulatory capital purposes. This is what Kiwibank reported yesterday. The holders of the instruments likely will keep their coupon, at the expense of the cash flows accruing to Kiwibank.
The reason for derecognising the instruments remains a bit of a puzzle: RBNZ "has concluded that K…
