Stablecoins are at the center of debate surrounding decentralized finance. We develop a
dynamic model to analyze the instability mechanism of stablecoins, the complex incentives …

The promise of contingent convertible capital securities (CoCos) as a” bail-in” solution has
been the subject of considerable theoretical analysis and debate, but little is known about …

Abstract Contingent Convertible (CoCo) bonds are subject to a considerable theoretical and
practical debate. This article presents a systematic literature survey from five databases …

We develop aq theory of investment with endogenous leverage, payout, hedging, and risk-
taking dynamics. The key frictions are costly equity issuance and incomplete markets. We …

Some regulators grant contingent convertible bonds (CoCos) the status of “going-concern”
capital. Theory, however, suggests that CoCos can induce debt overhang, thereby …

Contingent convertibles (CoCos) are intended to either convert to new equity or be written
down prior to failure while a bank is a going-concern. Yet, in the first actual test case, CoCos …

We construct a balance sheet network model to study the interconnectedness of a banking
system. A simulation analysis of the buffer effect of contingent convertible (CoCo) debt in …

We model contingent capital with market trigger under dual jump–diffusion processes in
asset values and equity prices. Under the dual jump–diffusions, we show that the conversion …

This paper examines the impact of contingent convertible (CoCo) financing on a firm's
Tobin's q. We first construct an endogenous dynamic investment and capital accumulation …

We survey 149 leading academic researchers on bank capital regulation. The median
(average) respondent prefers a 10%(15%) minimum non-risk-weighted equity-to-assets …