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In order to hedge this unfavorable scenario of capital injection, banks are considering the use of a hybrid security known as Contingent Convertible (CoCo) bonds. CoCos are designed to help a bank meet its capital adequacy and funding requirements, while at the same time achieving favorable tax deductibility treatment. These bonds are typically structured either as contingent notes or as contingent convertible notes. However, there is less public guidance from the regulators on write-ups and Standard & Poor's predicts that the CoCo market could grow to USD 1 trillion in the next five to 10 years.