Discuss contingent financial instruments and give an example

      

Discuss contingent financial instruments and give an example

  

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Dana
These are financial instruments that are aimed ate acting as a buffer for financial institution issuers during times of financial risk. They are intended to have loss absorbing features. These instruments are used in developed markets. The most common one is the Lloyd instrument. These are debt instruments that convert into equity if certain capital levels are breached.

Dana05 answered the question on July 18, 2019 at 19:20


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