DAVIS, DOUGLAS; KORENOK, OLEG; PRESCOTT, EDWARD SIMPSON - In: Journal of Money, Credit and Banking 46 (2014) 5, pp. 999-1033
We report an experiment that evaluates three market‐based regimes for triggering the conversion of contingent capital bonds into equity: a “fixed‐trigger” regime, where a price threshold triggers mandatory conversion; a “regulator” regime, where regulators make conversion decisions...