Hybrid bond borrowers should find the institutional US market a more welcoming place in the coming months now that the US National Association of Insurance Commissioners has put in place new rules that dramatically reduce the amount of risk-based capital that insurers, perhaps the most important investor base, will typically have to allocate to their holdings of the new wave of hybrids that has emerged since August 2005.
“In September the NAIC came up with a resolution that addressed their concerns that some of these hybrids were more risky than typical preferred, but reflecting the fact that these securities were nevertheless not as risky as common stock,” says Dominique Jooris, executive director, co-head debt capital markets hybrid capital, Europe, at Goldman Sachs.
You must be a Level 2 subscriber to access this archived content.
If your subscription includes access to the archive, please log in now to view.
To gain access to this content visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30% on your subscription.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
Level 1:
- Online access to the past 12 months content
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Level 2:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe