Regulators have shown great interest in utilizing contingent capital to absorb losses under
stressed conditions because it is expected to reduce the need of a government bailout and therefore
taxpayers' support. After a sizable market is developed for contingent capital, the value of issuers,
buyers, and existing stockholders and their roles in corporate governance will also be impacted.
Rating agencies have also considered the rating methodology for this new type of hybrid securities
and to what extent it can boost the issuer's financial strength