# kaal:claim:1908473-004

**Claim.** If conversion from debt to equity is triggered too late, the institution may already be in the resolution stage, and conversion at that point may not supply enough equity to produce the intended financial improvement.

**Type.** failure  **Support.** argued

**Holds when.**

- Institution has already entered the resolution stage when conversion occurs

**Source quote.**

> On the other hand, if conversion from debt to equity is triggered too late, the financial institution may already be in the resolution stage, and conversion at that stage may not supply the company with sufficient equity to facilitate the desired financial improvement.

**From.** Wulf A. Kaal, Christoph Henkel, *Contingent Capital with Sequential Triggers* (2011), I. INTRODUCTION, page 11

**Cite as.** Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011). SSRN: https://ssrn.com/abstract=1908473

**Verify.** sha256 of source PDF `9d578dac663357529edd1f6453fcfe69bdc59ac882408d9edfde5a4c2916befa` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Henkel%20-%202011%20-%20Contingent%20Capital%20with%20Sequential%20Triggers.pdf

**Failure mode.** late-trigger-insufficiency  (family: trigger-design-failure)

**Topics.** contingent-capital, systemic-risk

**Keywords.** trigger-design, contingent-capital, bank-resolution, conversion

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2061166-032
- restated_by: https://wulfkaal.github.io/claims/1998455-013
- extended_by: https://wulfkaal.github.io/claims/2061166-035

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.