This paper investigates the effects of financial institutions issuing contingent capital, a debt security that … associated with issuing contingent capital instead of subordinated debt. We then show that appropriate choice of contingent …-taking incentives continue to be weak during times of financial distress. Our findings imply that contingent capital may be an effective …

contingent capital and its applications, high quantiles estimation with Quasi-PORT and DPOT, with an application to value …

This article discusses the impact of contingent capital on the capital structure decisions of systemically important … contingent capital is extended by presuming the risk aversion of all market participants and by considering both the government …’s tax income and its expected rescue costs. It is shown that the use of contingent capital theoretically produces a Pareto …

A new type of bank regulatory capital, known as contingent capital, has emerged in tandem with discussions on the BASEL …-credit instruments and share many characteristics. Also, contingent capital through its unique mechanisms such as principal loss …, volatility, and resilience. In spite of the exotic risks, an investment decision in contingent capital can be justified if a …