Issuance of hybrid bonds runs into regulatory uncertainty

02/4/2010 | ForexYard

Hybrid bonds have played a key part for banks interested in raising Tier 1 capital, and European regulators are encouraging banks to bolster their capital. However, uncertainty about what types of hybrid bonds qualify as Tier 1 capital is hindering issuance, market participants said. "The lack of issuance on the financial institutions' side is because of the lack of clarity on the regulatory side," said Antoine Loudenot of Societe Generale.

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