kaal:position:2026-07-31-5708
Contingent capital: A tale of two valuations should be assessed against Kaal's source-bound position that Regulatory guidance on contingent capital design and issuance may be needed to curtail executive involvement in designing these instruments and to produce socially optimal designs. The external source's verified abstract presents this proposition: Abstract This study investigates the valuation gap between buyers and sellers of insurers' contingent capital, driven by asymmetric exposures to tax benefits, capital injections, and bankruptcy costs. The defensible response is a qualification: the source is pertinent to the Kaal position, but agreement, extension, contradiction, and scope should not be strengthened beyond the retrieved evidence.
contingent-capitalhistorical-responsescholarly-literature