kaal:claim:1998455-031

Issuing contingent capital securities with a conversion feature is a way for a banking entity to signal to its market that it will adhere to stricter standards, ethical or otherwise.

Source quote, verbatim

The issuance of contingent capital securities with a conver- sion feature could signal adherence to stricter standards.

From

Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012), VII.B. Reform from Within, p. 44
https://ssrn.com/abstract=1998455 · source PDF

Cite as

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

Holds when

where the market can observe and interpret the issuance as a commitment
the author notes the signaling effect of any particular issuance is difficult to ascertain

Classification

designsupport: arguedcontingent-capital

Verify

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Attestation record: colloquium/attestations/f63587693a0d9c28...json
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