The proposal for banks to issue contingent capital that must convert into common equity when the banks' stock price … capital prices. Multiple or no equilibrium arises because both equity and contingent capital are claims on the assets of the … to exist, mandatory conversion cannot result in any value transfers between equity holders and contingent capital …

costs. Approaches based on equity dominate alternatives, including contingent capital. To achieve better capitalization …

Contingent capital � any debt instrument that converts into equity when a predefined event occurs � has received … common equity. While the debate has focused on contingent capital for systemically important financial institutions, this …. We propose the introduction of countercyclical contingent capital (CCC) based on a double trigger. The interaction of the …