Now is the right time for potential new issuers outside of Europe to evaluate the use of CB as part of their funding strategy. Banks should be cautious however, not to place too much reliance on CB. The use of CB adds incremental constraints that banks need to manage together with other existing constraints. CB help with the liquidity ratios but do not reduce risk-weighted assets or the leverage ratios. With a growing proportion of the balance sheet encumbered, at some point, what may be a solution for liquidity, can become a problem with leverage and/or capital. The potential benefits for CB programs needs to be carefully evaluated, in context of the respective regulatory framework governing the program, and the subordination of non-secured bondholders in the event of insolvency of the issuer.