# kaal:claim:1998455-009

**Claim.** Installing contingent capital can be more efficient than raising capital requirements, because the capital injection becomes available only when it is needed and only enough securities convert to recapitalize the firm.

**Type.** mechanism  **Support.** argued

**Holds when.**

- assumes a functioning trigger that fires at the right time
- assumes incremental or calibrated conversion

**Source quote.**

> Installing contingent capital could be more efficient than raising capital requirements because the capital injection is available only when it is needed.

**From.** Wulf A. Kaal, *Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance* (2012), III.A. Possible Applications, page 19

**Cite as.** Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455

**Verify.** sha256 of source PDF `1c16ff10a284469ba15fb7ba5523449b917388ee692d9b394f9e8c094544e32c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202012%20-%20Initial%20Reflections%20on%20the%20Possible%20Application%20of%20Contingent%20Capital%20in%20Corporate%20Governance.pdf

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

**Keywords.** contingent-capital, capital-requirements, efficiency, recapitalization, basel-iii

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2957645-020
- restates: https://wulfkaal.github.io/claims/1908473-017
- extended_by: https://wulfkaal.github.io/claims/2957645-024

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