I voted up, even though I do not understand most of the instruments. I am sure however, this is interesting for those that do understand. For a two minute format in TRADE IDEAS, the guest must assume that he is speaking to a narrow audience. I will look into senior preferred bank debt for general interest. Thank you for your comment. DLS

This is why a retail investor should 'typically avoid' investing in CoCos http://www.euromoney.com/Article/3587535/Deutsche-totters-on-the-brink-once-again.html for questions such as What, Why and How read this report by BIS http://www.bis.org/publ/qtrpdf/r_qt1309f.pdf

Owning a coco is like having a short put on bank's equity - you get all the equity downside, but your upside is capped. It's the kind of instrument you own for relatively good carry, but you are exposed to negative convexity if the instrument is unlikely to be called on the next call date. If the CET1 trigger is hit or bank regulator proclaims that the coco issuer (bank) is non-viable and needs to be resolved, you get written off if the coco is a write-off instrument rather than equity conversion instrument (in which case you get equity which is worth zero anyway). I agree with the comments above that this is too complex of an instrument for less experienced private investors.

Yep, thank you for your feedback and recommendation.