Is a CoCo bond (contingent capital security) the same as a convertible bond?

No. A CoCo bond is a bond that is forcibly written off or converted into common shares when predetermined conditions occur, such as the issuing financial institution receiving a management improvement order or being designated an insolvent financial institution.

Unlike convertible bonds, which investors choose to convert when it is to their advantage, CoCo bonds can cause losses regardless of the investor's wishes if the issuer runs into difficulty. Reflecting this risk, their interest rates are set somewhat higher than those of ordinary corporate bonds.