An off-balance-sheet arrangement by which a company can ensure that a certain amount of funding is available when a pre-arranged trigger event, such as a natural disaster or the fulfillment of a raw materials price threshold, has been reached. Contingent capital arrangements are used to compensate for unexpected events or changes in expense amounts.
Related information about contingent capital:
- Contingent Capital Definition from Financial Times Lexicon
Contingent capital is debt that converts into equity when there is a crisis or when certain triggers are met. [1]. Regulators have made no secret of their fondness ...
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Contingent capital has emerged as a possible solution to the “too big to fail” problem, but the discussion of its merits and shortcomings has proven to be complex ...
- What is contingent capital? definition and meaning
Definition of contingent capital: Funds that would be available under a pre- negotiated agreement if a specific contingency (such as a natural disaster) occurs or a ...
- Contingent Capital: Economic Rationale and Design Features ... - IMF
Jan 25, 2011 ... B. Contingent Capital As Additional Loss-Absorbing Capital Buffer for SIFIs ..15 ... How Does Contingent Capital Compare with Hybrid and ...
- The advantages of contingent capital | The Economist
Oct 14, 2009 ... AS REAL TIME ECONOMICS reports, Fed officials have recently been talking up the idea of contingent capital as a tool to improve the policy ...
- Caution urged on contingent capital | Business | guardian.co.uk
May 31, 2012 ... Bank of England financial stability paper argues policymakers would need to consider 'possibility that precautionary contingent capital ...
- On the Design of Contingent Capital with Market - Federal Reserve ...
May 6, 2010 ... Contingent capital (CC), a regulatory debt that must convert into common ... Contingent Capital, the BIS, the ECB, Toulouse Economics Group, ...
- Barclays Contingent Capital Securities Risk Shareholder Conflict ...
Nov 12, 2012 ... Barclays Plc plans to sell bonds that turn the traditional order of stakeholders upside down as the second-largest U.K. bank seeks to bolster its ...