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Banks pitching bonds with high equity content

Investors open to issuance of such rare corporate hybrids as hunt for yield continues.

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Corporates are at the mercy of rating agencies as the de facto arbitrators of the features hybrids need to include. Dong Energy lost the 100 per cent equity credit it received for a 7.75 per cent deal when S&P altered its methodology in 2013.

BANKS are gauging investor interest for corporate hybrid bonds with high equity content, a product feasible for the first time in years as a strong backdrop allows issuers to push market boundaries.

Hybrids have been a popular choice with corporate borrowers in recent years as a way of

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