FT

• Cocos - contingent convertible bonds - convert debt to equity if a bank's capital ratios fall to a pre-assigned level, and are supposed to make a bank safer.
• As soon as you get near a trigger level, the stock should fall VERY quickly because you know it will halve in value if the coco is triggered!

Underwriting - the underwriter bears the risk of being able to sell the underlying securities, and the cost of holding them on its books until such time in the future that they may be favorably sold

• US mortgage rules - banks must retain 5% of any 'non-qualifying' mortgage w/ downpayment less than 20%. This may be significant and only solved by the development of a covered bond market (coco's?)
• Oil vs USD
1. Oil prices goes up
2. More petro-dollars(USD) in other oil producing countries
3. Need to sell USD and buy home currency
   
4. Excess supply of USD => price USD vs other currency falls(or T-rates fall)