# kaal:claim:2957645-017

**Claim.** 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.

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

**Holds when.**

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

**Source quote.**

> 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, page 11

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

**Verify.** sha256 of source PDF `250b10782a5ea5dece9235a7f711aee408feaf36f2e78e310d589b5ee6304be2` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Dynamic%20Regulation%20via%20Contingent%20Capital.pdf

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

**Keywords.** contingent-capital, bank-restructuring, liquidation, debt-equity-conversion

**Related claims.**

- restates: https://wulfkaal.github.io/claims/2061166-003

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