Contingent Convertibles (CoCos) are debt instruments that either convert into equity or are written down (cancelled) when triggered. This article argues that temporary write-down CoCos diminish the incentives of investors to monitor and discipline bank managers. This monitoring and disciplining role is an important objective of CoCos that reduces the probability of bank insolvency and consequently the magnitude of potential bailouts. For investors, temporary write-down CoCos are less risky th...