This research letter proposes an alternative trigger to the recently introduced Dynamic Control of Leverage (DCL). These instruments are similar to traditional CoCo bonds and are used to maintain a firm's leverage within pre-defined boundaries to ensure a low probability of default. Our proposed...

Mathematical finance requires the use of advanced mathematical techniques drawn from the theory of probability, stochastic processes and stochastic differential equations. These areas are generally introduced and developed at an abstract level, making it problematic when applying these...