Despite uncertainty over the future of regulatory capital
rules, banks are confident that innovative hybrid products will
eventually provide core capital for financial institutions.
I am optimistic that we will evolve into a situation
in which there are more hybrid securities of one form or
another, said Steven Sahara, global head of hybrid
capital structuring at Calyon. They will service the
financial community, users of financial systems and therefore
society, he said.
Sahara was speaking on the panel of an IFLR web seminar in
association with Morrison & Foerster. The discussion
focussed on effective structures that may be adapted and
mimicked by the market.
Lloyds Banks contingent capital issuance in November
last year was held up as an example. The £7.5 billion
($11.7 billion) 10-year exchange offer had a