Moody's Investors Service changed the assumptions it uses to set credit ratings on debt, a move that will affect hundreds of hybrid and subordinated notes issued by financial institutions worldwide. "The key concern is whether the ratings downgrades trigger investment mandate breaches which could force investors to sell," said Ben Byrne, a credit analyst at Nomura Australia. "We think the majority of the selling has already occurred, given that hybrids have been trading at prices significantly lower than their current ratings suggest are appropriate."

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