kaal:claim:2957645-017

Strained financial institutions may find the automatic conversion of debt into equity through contingent capital securities an attractive alternative to being forced into restructuring or liquidation.

Source quote, verbatim

Strained financial institutions may find the automatic conversion of debt into equity via contingent capital securities an attractive alternative to being forced into restructuring or liquidation.31

From

Kaal, Dynamic Regulation via Contingent Capital (2017), III. Contingent Capital, p. 11
https://ssrn.com/abstract=2957645 · source PDF

Cite as

Kaal, Dynamic Regulation via Contingent Capital (2017). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2957645

Holds when

the institution is already financially strained
restructuring or liquidation is the realistic alternative

Classification

mechanismsupport: arguedcontingent-capitalsystemic-risk

Related claims

restates kaal:claim:2061166-003 Contingent capital is stipulated as the predefined conversion of a financial institution's debt securities int...

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 250b10782a5ea5dece9235a7f711aee408feaf36f2e78e310d589b5ee6304be2. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/184f50b656468b9c...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/2957645-017.md | sha256sum