Mind The Warning Shot—Strapped Chinese Bank Stiffs CoCo Bond Holders

The payments are non-cumulative, meaning if Jinzhou starts making payments again, it doesn’t have to pay the missed amount, which totals about $82 million. These bonds usually pay an annual coupon of 5.5%. Similar securities issued by peers such as Bank of Chongqing and Huishang Bank Corp. declined slightly in price, and were marked about one cent lower, said a credit trader in Hong Kong.