# kaal:claim:2097160-033

**Claim.** Contingent convertible bonds with a conversion feature add what plain inside debt lacks: an early warning system and a buffer before insolvency that can help the entity avoid default.

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

**Holds when.**

- conversion feature rather than write-down
- trigger set before insolvency

**Source quote.**

> Contingent convertible bonds with a conversion feature offer the additional benefit of creating an early warning system and a buffer before insolvency that can help an entity avoid default.218

**From.** Wulf A. Kaal, *Contingent Capital in Executive Compensation* (2012), VI.A Contingent Capital as Inside Debt, page 55

**Cite as.** Wulf A. Kaal, Contingent Capital in Executive Compensation (2012). SSRN: https://ssrn.com/abstract=2097160

**Verify.** sha256 of source PDF `1e1f8aa246bce19f4658dbceb455c7c2a272aa5d63a9e9bdaa46a3a5a87680fc` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202012%20-%20Contingent%20Capital%20in%20Executive%20Compensation.pdf

**Topics.** contingent-capital

**Keywords.** inside-debt, early-warning-system, insolvency-buffer, contingent-capital

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2273857-056

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