Barucci, Emilio; Del Viva, Luca - In: Journal of Banking & Finance 36 (2012) 6, pp. 1688-1709
We analyze the optimal capital structure of a bank issuing countercyclical contingent capital, i.e., notes to be converted into common shares in poor macroeconomic conditions. A comparison of the main effects produced by the countercyclical asset with the simple equity-debt capital structure,...