The second trigger should be an objective, automatic, institution specific trigger, with improvement measured through a combination of debt to equity ratio improvement and credit default swap spread narrowing after conversion.
Source quote, verbatim
the approach of this Article favors an objective automatic institution-specific second trigger for the voting rights increase. The improvement of the financial institution could be measured objectively through a combination of debt-equity ratio improvement and CDS spread narrowing after conversion.
From
Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011), IV.B.1. Objective Automatic Institution-Specific Trigger, p. 38 https://ssrn.com/abstract=1908473 · source PDF
Cite as
Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011). SSRN: https://ssrn.com/abstract=1908473
Holds when
The precise arithmetic must be institution specific
Classification
designsupport: arguedcontingent-capital
Related claims
extended_bykaal:claim:2097160-017 Institution-specific automatic triggers are the preferred basis for early trigger designs because they are fle...
Verify
The quote above is an exact substring of the source PDF, whose sha256 is 9d578dac663357529edd1f6453fcfe69bdc59ac882408d9edfde5a4c2916befa. Extraction method: pdf-text-layer. Attestation record: colloquium/attestations/cf3d03071389588d...json Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/1908473-028.md | sha256sum