Are CoCos from cloud cuckoo-land?

There are a number of reforms for financial regulation that enjoy almost universal endorsement, at least from the great and the good in the academic fraternity. These include: i) routing most derivative deals through centralised clearing parties (CCPs); ii) requiring all systemically important financial intermediaries (SIFIs) to write "living wills"; iii) imposing tougher capital regulations on assets held in bank trading books; iv) giving incentives to banks to hold a larger proportion of li