# Funding costs

`kaal:entity:funding-costs`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `funding-costs`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

3 claims across 2 works, 2011 to 2012.

**2011**

- [1908473-012](https://wulfkaal.github.io/claims/1908473-012) [failure/argued] *(failure mode)* -- 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.
  > 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.
  Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011). SSRN: https://ssrn.com/abstract=1908473
- [1908473-020](https://wulfkaal.github.io/claims/1908473-020) [failure/argued] *(failure mode)* -- 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.
  > 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.
  Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011). SSRN: https://ssrn.com/abstract=1908473

**2012**

- [2061166-024](https://wulfkaal.github.io/claims/2061166-024) [failure/evidenced] *(failure mode)* -- 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.
  > 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.
  Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012). SSRN: https://ssrn.com/abstract=2061166

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/funding-costs.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.