Despite the skepticism, there is a high and increasing interest in contingent capital instruments.
Many designs of contingent capital have been proposed in trying to address the issues mentioned
above. The key differences between possible designs so far concern the trigger event and the
method of loss absorbency.
Scope of the trigger event. The trigger event can be based on the issuer's financial condition or on an
industry-wide indicator. Industry-wide indicators, such as an aggregated market loss index or