Assessing Contingent Convertible Bonds for Bank Recapitalization in Nigeria
نویسندگان
چکیده
منابع مشابه
Convertible bonds and bank risk-taking
We study how contingent capital that converts in equity ahead of default affects bank risk-shifting. Going concern conversion restores equity value in highly levered states, thus reducing heightened risk incentives. In contrast, conversion at default for traditional bail-inable debt has no effect on endogenous risk. The main beneficial effect comes from reduced leverage at conversion. In contra...
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A firm issues a convertible bond. At each subsequent time, the bondholder must decide whether to continue to hold the bond, thereby collecting coupons, or to convert it to stock. The firm may at any time call the bond. Because calls and conversions often occur far from maturity, it is not unreasonable to model this situation with a perpetual convertible bond, i.e., a convertible coupon-paying b...
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A convertible (callable) bond is a security that the holder can convert into a specified number of underlying shares. In addition, the issuer can recall the bond, paying some compensation, or force the holder to convert it immediately. We give an explicit solution to the corresponding optimal stopping game in the context of a reduced form model driven by a Brownian motion and a compound Poisson...
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ژورنال
عنوان ژورنال: Central Bank of Nigeria Journal of Applied Statistics
سال: 2019
ISSN: 2476-8472,2141-9272
DOI: 10.33429/cjas.10119.6/6