# kaal:claim:1908473-020

**Claim.** Requiring financial institutions to sell high volumes of contingent capital securities, on the order of four to nineteen percent of risk weighted assets, could raise pricing pressure and increase their cost of funding.

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

**Holds when.**

- Applies at the issuance volumes contemplated by the EU Commission working document

**Source quote.**

> High volumes sold by financial institutions—some estimates suggest between four and nineteen percent of risk-weighted assets of financial institutions104—could lead to increased pricing pressure and increased cost of funding.

**From.** Wulf A. Kaal, Christoph Henkel, *Contingent Capital with Sequential Triggers* (2011), II.B. Limitations and Open Issues, page 23

**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.** issuance-volume-cost  (family: liquidity-and-market-structure-failure)

**Topics.** institutional-design

**Keywords.** issuance-volume, funding-costs, pricing-pressure, eu-commission

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