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dc.contributor.authorvon Furstenberg, George M.en_US
dc.date.accessioned2011-02-23en_US
dc.date.accessioned2011-04-06T10:53:11Z-
dc.date.available2011-04-06T10:53:11Z-
dc.date.issued2011en_US
dc.identifier.isbn978-3-86558-679-7en_US
dc.identifier.urihttp://hdl.handle.net/10419/44598-
dc.description.abstractThis study examines the promise of reducing expected resolution costs of financial institutions through either voluntary or mandated addition of contingently convertible debt securities to their long-term financing mix. I model the stochastic process by which an initially very well capitalized banking firm may come to violate its minimum capital maintenance requirement. Conversion of cocos then provides a second chance because the firm's initial capitalization is restored. Although regulatory insolvency remains a distant threat, the expected reductions in the cost of bankruptcy and hence the cost of capital are such that cocos may win a place in the liability structure of financial institutions without the need for mandates.en_US
dc.language.isoengen_US
dc.publisherDeutsche Bundesbank Frankfurt am Mainen_US
dc.relation.ispartofseriesDiscussion Paper Series 2: Banking and Financial Studies 2011,01en_US
dc.subject.jelE44en_US
dc.subject.jelG33en_US
dc.subject.jelG38en_US
dc.subject.ddc330en_US
dc.subject.keywordfinancial reformsen_US
dc.subject.keywordregulatory insolvencyen_US
dc.subject.keywordcontingent capitalen_US
dc.subject.keywordbank regulationsen_US
dc.subject.keywordcocosen_US
dc.titleContingent capital to strengthen the private safety net for financial institutions: Cocos to the rescue?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn647226642en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bubdp2:201101-
Appears in Collections:Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank

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