# kaal:claim:2061166-034

**Claim.** A second, sequential trigger placed before reorganization or resolution cushions the risk that policy makers misstructure the first trigger, absorbing the negative effects of inadequate or untimely conversion at the moment the institution needs capital.

**Type.** design  **Support.** argued

**Holds when.**

- contingent capital with sequential triggers spanning going and gone concern
- where the first trigger proves unsuccessful

**Source quote.**

> Given the risk that policy makers may not structure the trigger appropriately, the negative effects of inadequate or untimely conversion of debt into equity at a time when the company requires a capital injection could be cushioned with a second trigger

**From.** Christoph K. Henkel, Wulf A. Kaal, *Contingent Capital in European Union Bank Restructuring* (2012), C. Dual Triggers in Going and Gone Concern, page 68

**Cite as.** Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012). SSRN: https://ssrn.com/abstract=2061166

**Verify.** sha256 of source PDF `43625ea260d0fc045e86d3435df50c9d0ca4abf8542e6085a6165be6653b4a7b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Henkel%20and%20Kaal%20-%202012%20-%20Contingent%20Capital%20in%20European%20Union%20Bank%20Restructuring.pdf

**Topics.** contingent-capital, systemic-risk, governance-design

**Keywords.** sequential-triggers, trigger-design, contingent-capital, resolution, voting-rights

**Related claims.**

- extends: https://wulfkaal.github.io/claims/1908473-006
- extends: https://wulfkaal.github.io/claims/1908473-005
- extends: https://wulfkaal.github.io/claims/1908473-007
- extends: https://wulfkaal.github.io/claims/1908473-030
- extends: https://wulfkaal.github.io/claims/1998455-013

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