Call Me Maybe? The Effects of Exercising Contingent Capital
| Title: | Call Me Maybe? The Effects of Exercising Contingent Capital |
|---|---|
| Authors: | Jel Codes G; Jean-noel Barrot; Jean-edouard Colliard; Simon Gervais; Johan Hombert; Rajkamal Iyer; Adrien Matray; Evren Ors; Jose-luis Peydro; Guillaume Plantin; Manju Puri; Adriano Rampini |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://www.hbs.edu/faculty/Publication Files/CallMeMaybe_130514_bebed4db-509f-47c9-9570-1cc1d8e0bd45.pdf. |
| Publication Year: | 2014 |
| Collection: | CiteSeerX |
| Subject Terms: | Contingent Capital; Financial Distress; Regulatory Capital; Financial Institutions |
| Description: | This paper studies market reaction and economic performance following the first episode of banks triggering contingent capital options. During the financial crisis, European banks massively used embedded options in their hybrid bonds to reduce their debt burden. These triggers are positively received by debtors, while stockholders discriminate according to the type of resulting debt relief and the financial institution leverage. Moreover, banks that trigger permanent debt reliefs exhibit higher economic performance than the ones that do not. These findings point towards innovative debt instruments offering an effective solution to the dilemma of bank capital regulation. |
| Document Type: | text |
| File Description: | application/pdf |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.572.5970 |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.572.5970; http://www.hbs.edu/faculty/Publication Files/CallMeMaybe_130514_bebed4db-509f-47c9-9570-1cc1d8e0bd45.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.1885247D |
| Database: | BASE |