Contingent capital: the trigger problem

In this article, we analyze price triggers in contingent capital bonds. We illustrate the pervasiveness of multiple equilibria and the nonexistence of equilibrium in theoretical models. We summarize evidence of these problems from market experiments and we evaluate possible solutions.

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Year of publication:	2012
Authors:	Prescott, Edward S.
Published in:	Economic Quarterly. - Federal Reserve Bank of Richmond. - 2012, 1Q, v. 98, no. 1, p. 33-50
Publisher:	Federal Reserve Bank of Richmond
Subject:	Banking market

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010722868