The memo discusses the capital ratios of BBVA and Santander, noting that their cET1 ratios are far from the trigger levels for contingent convertible bonds (CoCos). It highlights the discretionary nature of the coupons and the incentive for issuers to call the bonds due to potential coupon step-ups. The focus is on 'yield to call' rather than 'yield to maturity'.
doj/DataSet10/EFTA01453134.pdf
{"key_people":["Tazia Smith"],"document_type":"correspondence","document_subtype":"memo","key_organizations":["BBVA","Santander","Deutsche Bank Securities, Inc.","Deutsche Asset & Wealth Management"]}