George Pennacchi, a Professor of Finance at the University of Illinois, has published a paper titled A Structural Model of Contingent Bank Capital that leads to some surprising – to me – conclusions: This paper …
Search Results for: conversion
Contingent Capital with a Dual Price Trigger
Robert McDonald of Northwestern University has published a paper titled Contingent Capital with a Dual Price Trigger that I consider excellent – mainly because it advocates a framework for Contingent Capital that includes the structure …
FRBNY Staff Propose Floating Rate Contingent Capital
The Federal Reserve Bank of New York has released Staff Report #448, by Suresh Sundaresan and Zhenyu Wang, titled Design of Contingent Capital with a Stock Price Trigger for Mandatory Conversion: The proposal for banks …
OSFI's Dickson Speaks on Contingent Capital
Julie Dickson, Superintendent of the Office of the Superintendent of Financial Institutions, has delivered a speech on contingent capital titled Too-big-to-fail and Embedded Contingent Capital. This speech is long overdue; most regulators would have delivered …
April 26, 2010
IIROC has announced that downtown Toronto will be safe and accessible under any conceivable conditions: IIROC recently decided to cancel the industry business continuity planning test that was scheduled for June 26, 2010 due to …
Newcastle Building Society Issues Contingent Capital
The Newcastle Building Society has announced a conversion of some capital instruments into contingent capital: Newcastle Building Society (the “Society”) today announces that it has reached an agreement with holders of certain classes of the …
Tarullo Speaks on Contingent Capital
Daniel K Tarullo, Member of the Board of Governors of the Federal Reserve System, gave a speech at the Council of Institutional Investors meeting, Washington DC, 13 April 2010. A second proposal that has received …
S&P Comments on Basel 3
Standard & Poor’s has commented: We understand that the Basel committee intends that Tier 1 capital should enable each bank to remain a going concern, with Tier 2 capital re-categorized as a “gone concern” reserve …
DBRS Addresses Contingent Capital
DBRS has announced a policy on contingent capital. DBRS has today clarified its approach to rating a subset of hybrids and other debt capital instruments whose features include principal write-downs or conversions to lower positioned …
Dickson Supports Regulatory Trigger for Contingent Capital
The Financial Post reports: Ms. Dickson, head of the Office of the Superintendent of Financial Institutions, spelled out her case in the Financial Times yesterday. Her comments, along with those yesterday from Royal Bank of …