Basel III Implications for banks' capital structure: What happens with hybrid capital instruments?

The book "Basel III Implications for Banks' Capital Structure: What Happens with Hybrid Capital Instruments?" by Timo Köffer provides an in-depth analysis of the effects of Basel III on the capital structure of banks, particularly regarding hybrid capital instruments such as Contingent Convertible Bonds (CoCos). It examines how CoCos differ from traditional convertible bonds and to what extent they are suitable as core capital under the new Basel III regulations. At the beginning of the book, the background of the introduction of Basel III is explained, followed by a detailed presentation of the Basel III document and the new capital definitions. The author explains how hybrid capital instruments work and highlights the differing interests of investor groups. A practical example analyzing Commerzbank AG illustrates the changes in capital components from Basel II to Basel III. Finally, the potential impact of Basel III on hybrid capital instruments and the new capital instruments CoCos is summarized.