Contingent capital will keep markets on their toes: Canada’s Carney
Contingent capital could help enforce market discipline in banks and investors, and take the burden of taxpayers, Mark Carney, the governor of the Bank of Canada, said on Tuesday.
In a lecture given at the Bundesbank, Carney lauded the benefits of contingent capital, a type of debt that converts automatically to equity when the issuing institution faces turbulence. "Contingent conversions could be embedded in all future new issues of senior unsecured debt and subordinated securities to create a
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