{
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 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/funding-costs",
 "identifier": "kaal:entity:funding-costs",
 "name": "Funding costs",
 "termCode": "funding-costs",
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 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
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   "value": [
    "2011",
    "2012"
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 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1908473-012",
   "identifier": "kaal:claim:1908473-012",
   "text": "Because contingent capital is a hybrid instrument that pays fixed returns while bearing equity like risk, it may receive low or no ratings, attract a much smaller investor base, and carry higher funding costs.",
   "abstract": "As a hybrid security, contingent capital may receive low or no ratings and may have a much smaller investor base and higher costs of funding.",
   "citation": "Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011). SSRN: https://ssrn.com/abstract=1908473",
   "datePublished": "2011",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "Holds while rating methodologies for hybrid contingent instruments remain unsettled"
   ],
   "source_pdf_sha256": "9d578dac663357529edd1f6453fcfe69bdc59ac882408d9edfde5a4c2916befa",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1908473-020",
   "identifier": "kaal:claim:1908473-020",
   "text": "Requiring financial institutions to sell high volumes of contingent capital securities, on the order of four to nineteen percent of risk weighted assets, could raise pricing pressure and increase their cost of funding.",
   "abstract": "High volumes sold by financial institutions—some estimates suggest between four and nineteen percent of risk-weighted assets of financial institutions104—could lead to increased pricing pressure and increased cost of funding.",
   "citation": "Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011). SSRN: https://ssrn.com/abstract=1908473",
   "datePublished": "2011",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "Applies at the issuance volumes contemplated by the EU Commission working document"
   ],
   "source_pdf_sha256": "9d578dac663357529edd1f6453fcfe69bdc59ac882408d9edfde5a4c2916befa",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2061166-024",
   "identifier": "kaal:claim:2061166-024",
   "text": "Implementing the European Commission's debt write-down proposal has the potential to increase funding costs for financial institutions and to make their funding more volatile.",
   "abstract": "The implementation of the debt write-down in the European Commission proposal also has the potential of increasing funding costs for financial institutions475 and could make funding more volatile.",
   "citation": "Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012). SSRN: https://ssrn.com/abstract=2061166",
   "datePublished": "2012",
   "claim_type": "failure",
   "confidence": "evidenced",
   "is_failure_mode": true,
   "scope_conditions": [
    "statutory bail-in regime as proposed by the Commission"
   ],
   "source_pdf_sha256": "43625ea260d0fc045e86d3435df50c9d0ca4abf8542e6085a6165be6653b4a7b",
   "status": "current"
  }
 ],
 "description": "3 claims in the published works of Wulf A. Kaal carry the concept tag 'funding-costs'. Derived node: a roster, not an adjudicated definition."
}