kaal:claim:2957645-020

Contingent capital may be more efficient than simply raising capital requirements, because the capital injection is available only when it is needed and, when triggered, only as much of the contingent capital converts as is necessary to recapitalize the firm.

Further, contingent capital may be more efficient than raising capital requirements, because the capital injection is available only when it is needed45 and, when triggered, only enough CCS converts as is necessary to recapitalize the firm.46

Kaal, Dynamic Regulation via Contingent Capital (2017), III. Contingent Capital, p. 13
https://ssrn.com/abstract=2957645 · source PDF

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

• the trigger design causes conversion only in the amount necessary for recapitalization

mechanismsupport: arguedcontingent-capitaleconomics

• restates kaal:claim:1998455-009 Installing contingent capital can be more efficient than raising capital requirements, because the capital inj...
• restates kaal:claim:1908473-017 Contingent capital securities are likely to be more efficient than raising capital requirements, because the c...

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