HYBRID CAPITAL SECURITIES: a definitive guide for issuers and investors
By Steve Sahara with Annabel Daws-Chew
Issuers and investors worldwide have embraced hybrid securities as an exciting new debt capital markets opportunity. For issuers, hybrids are a flexible tool for managing the capital structure, and for investors, the hybrid asset class offers incremental investment yield opportunities.
The global hybrid capital market has grown dramatically and has continued to evolve over the past 15 years. Precisely because of the “hybrid” nature of the asset class, it continues to
evolve and defy attempts to create a simple universal explanation.
The product developments within the hybrid market are often in response to changes in legal, accounting, tax, regulatory or rating agency frameworks, which impact the form and applicability of hybrid instruments. For a newcomer to the hybrid market, the current tapestry of structuring nuances can seem arcane and even non-sensical without a timeline of the historical layering of regulatory requirements and financial engineering responses.
Hybrid Capital Securities also contains the key hybrid capital security developmental milestones which have occurred over time and puts them in context, so that issuers and investors can form a better appreciation of the rational for typical contemporary hybrid securities today and glean what the future may bring.
WHO SHOULD READ IT?
Whether you are an investor or issuer you will find this report an indispensable guide to understanding exactly how to evaluate the benefits and risks of hybrid securities. The strategic nature of hybrid issuance usually means that the ultimate issuance decision is made by the “C level” senior management (CEO/CFO) and the Board of Directors – therefore the ability to quickly but thoroughly brief these executives is essential. Similarly when investors are taking the decision to invest in hybrids as an asset class or evaluating and comparing hybrids in the market there is a need to rapidly come up to speed on this intricately complex array of securities that may appear more similar on the surface than the details later reveal. Therefore, the report will allow the reader to navigate the hybrid landscape quickly and efficiently and be alert to the most important distinctions to focus on going forward.
Written by one of the most experienced market practitioners in the world, Opportunities in Hybrid Capital should be essential reading for anyone with an interest in this complex, growing market.
Published October 2007, Hybrid Capital Securities is priced at £995/US$2,021 with a 15% discount for IFR subscribers.
To reserve your copy now contact john.woodward@thomson.com or phone on +44(0)207 369 7317 to be one of the first to read this definitive report.
