Euro; go Co Co pop

Charles Calomiris has long wanted to see this in the U.S. Now the Greeks are bearing his contingent convertible bonds (to equity) gift idea to government debt;

Yanis Varoufakis, Greece’s new finance minister.... is pushing for part of his country’s debt to be swapped for bonds linked to gross domestic product so Athens’ obligations vary according to how well the Greek economy performs. GDP-linked bonds have long been discussed by economists. But so have “sovereign coco” bonds — and their proponents argue they could prevent high-stakes Greece-like crises from erupting in the first place.

In March 2011, Axel Weber, then president of Germany’s Bundesbank, proposed clauses in eurozone government bonds which would automatically extend their maturity by three years if a country had to be bailed out by European institutions. Bank of England economists have made similar proposals, suggesting sovereign cocos that “pop” when the International Monetary Fund is called in.

Though the Financial Times story seems to think it's past due date for Greece. But the future may be now.