The Basel III capital rules for banks were developed to prevent repeats of the financial crisis, but their release gave investors in hybrid bonds a boost. Bonds issued by UniCredit, Wells Fargo and other financial institutions advanced after the requirements were announced. The Basel Committee on Banking Supervision said subordinated hybrid notes will no longer be counted as capital in three years, a move that encourages banks to redeem the securities if their yields are higher compared with other types of funding.

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Bloomberg, Reuters

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