Hybrids are here to stay, but formats are not set in stone

The buzzwords in corporate hybrid capital are stability and standardisation. Market participants are delighted to have found a template structure that suits all the rating agencies, enabling the product to take off. Dozens of companies now issue, in deals of €150m to €6bn. But while all welcome this calm, hybrids still rely on a complex interaction of rating, accounting and tax treatments. This precise balance works for now, but is unlikely to go unchanged forever. Jon Hay reports.