# kaal:claim:2957645-020

**Claim.** 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.

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

**Holds when.**

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

**Source quote.**

> 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

**From.** Kaal, *Dynamic Regulation via Contingent Capital* (2017), III. Contingent Capital, page 13

**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, economics

**Keywords.** capital-requirements, contingent-capital, recapitalization, regulatory-efficiency

**Related claims.**

- restates: https://wulfkaal.github.io/claims/1998455-009
- restates: https://wulfkaal.github.io/claims/1908473-017

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