Hybrid hopes rise on temp write-down talk for CRR I

13 Jan 2012

The future of European hybrid capital brightened this week when the European Council opened the door to temporary write-down features for tier one securities under incoming CRD IV and CRR I rules.

If ultimately adopted, temporary write-down features would make new-style tier one capital instruments much more appetising to investors — buyers worry about holding perpetual securities that carry the threat of permanent principal writedown.

"It is great news that they are now talking explicitly about temporary write down," said ...

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