kaal:claim:2097160-004
The conversion feature of contingent convertible bonds affects corporate governance in a SIFI only if issuance volumes are sufficient and design features are adequate, because the governance effect runs through the threat of dilution of existing equity positions.
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If sufficient volumes of contingent convertible bond issuances are combined with adequate design features, the conversion feature of contingent convertible bonds and the threat of dilution of equity positions in SIFIs could affect corporate governance in SIFIs.108
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conditionsupport: arguedcontingent-capitalgovernance-designcorporate-governance
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