This paper has potential implications for the management of the bank. We examine a bank capital structure with contingent convertible debt to improve financial stability. This type of debt converts to equity when the bank is facing financial difficulties and a conversion trigger occurs. We use a leverage ratio, which is introduced in Basel III to trigger conversion instead of traditional capital ratios. We formulate an optimization problem for a bank to choose an asset allocation strategy to maximize the expected utility of the bank's asset value. Our study presents an application of stochastic optimal control theory to a banking portfolio choice problem. By applying a dynamic programming principle to derive the HJB equation, we define and solve the optimization problem in the power utility case.The numerical results show that the evolution of the optimal asset allocation strategy is really affected by the realization of the stochastic variables characterizing the economy. We carried out a sensitivity analysis of risk aversion, time and volatility. We also reveal that the optimal asset allocation strategy is relatively sensitive to risk aversion as well as that the allocation in CoCo and equity decreases as the investment horizon increases. Finally, sensitivity analysis highlights the importance of dynamic considerations in optimal asset allocation based on the stochastic characteristics of investment opportunities.

Objectives: The purpose of this analysis is to present a two-year follow-up of patient-reported outcomes, revision rate, and notable radiographic features of a convertible, diaphyseal-fit anatomic total shoulder arthroplasty system (ATSA). Methods: From June 2012 to June 2015, 100 shoulders were treated with ATSA using a convertible, diaphyseal-fit stem. Functional outcomes and radiographic findings were assessed preoperatively and at 6 months, 1 year, and 2 years postoperatively. Complications and reoperations were also determined. Results: Ninety-three shoulders were analyzed in this study. Patients were 47. 3% male and had an average age of 67. 3±, 8. 1-years-old (range 44. 7-89. 1). Two-year clinical outcomes show a revision rate of 4. 3%. Average preoperative ASES was 37. 1±, 18. 9 (6. 7-86. 7), SST (77. 4%) was 3. 1±, 2. 4 yes responses (0-9), and SANE (88. 2) was 25. 4±, 21. 5% (0-85. 0%). At two years post-operative average (75% follow-up) ASES was 89. 3±, 15. 1 (37. 0-100), SST was 10. 0±, 2. 5 yes responses (0-12), and SANE was 85. 6%±, 17. 0% (33. 0-100%). Radiographic analysis at two years identified 2 shoulders (4%) with glenoid radiolucency (both Lazarus grade 1), 5 shoulders with at least one humeral radiolucent line (10%), and 9 shoulders (18%) with stress-shielding. There were 12 shoulders (24%) with distal pedestal formation. This finding was associated with the presence of radiolucent lines (P=0. 002). Conclusion: This two-year analysis identified improvement in ASES, SST, and SANE scores and a low revision rate. Presence of a distal pedestal was associated with increased rates of radiolucent lines. Further analysis with longerterm and more robust follow-up will improve our understanding of the risks and benefits of this shoulder system.