Hybrid market heats up

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Hybrid market heats up

The pace of issuance in the dollar hybrid tier one market is speeding up with three issuers tapping the market in less than a week. National Australia Bank is the latest and is set to price its perpetual deal tomorrow via Bank of America Merrill Lynch, Goldman Sachs and HSBC. With a whisper of a low 8% handle, the coupon could beat Nordea’s issue this week, which at 8.375%, was itself the lowest of the year so far. To read a full account of the deals — and why issuers are still raising tier one despite warnings from regulators, read EuroWeek on Friday.

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