# kaal:claim:1908473-023

**Claim.** A dual trigger that relies on a financial institution index gains from its use of market prices but is vulnerable to index manipulation and to bondholders attempting to force the institution into bankruptcy.

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

**Holds when.**

- Applies to dual price trigger designs that include a sector or system index component

**Source quote.**

> Although the strength of this proposal is its reliance on market prices, a disadvantage could be the index trigger, which could result in index manipulation or an attempt to force the entity into bankruptcy.

**From.** Wulf A. Kaal, Christoph Henkel, *Contingent Capital with Sequential Triggers* (2011), IV. SEQUENTIAL TRIGGERS AS PART OF THE EUROPEAN COMMISSION'S TARGETED APPROACH, page 33

**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.** index-trigger-manipulation  (family: trigger-design-failure)

**Topics.** contingent-capital, economics

**Keywords.** dual-trigger, index-manipulation, trigger-design, market-prices

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2061166-033

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