Hybrids in the news

JPMorgan Doubles Offering to Sell $1.1 Billion of Preferreds

Hybrid fever reaches Australia

UBS Contingent Capital Bonds Got $9 Billion Orders, CFO Says

UBS, Switzerland’s biggest bank, received orders of $9 billion for the contingent capital bonds issued last week, or 4 ½ times the amount sold, Chief Financial Officer Tom Naratil said.

UBS draws strong demand for CoCo that can write down to zero

UBS made a bet that US investor desperation for yield is at fever pitch, and won hands down this week when it attracted a whopping $9 billion of orders from more than 450 investors for its $2 billion tier 2 write-down transaction.

Banks Find New Way to Squeeze Investors

In June, the Federal Reserve proposed enhanced capital requirements for large banks that exclude most trust preferred shares from regulatory Tier 1 capital. Since this is considered a "capital treatment event," banks can redeem their trust preferred shares, even before the call date, often at face value, despite any premium the market previously placed on trust preferred shares paying high dividends.

Is Dodd-Frank The Death Of Preferreds?

European banks move closer to Basel III

European banks are unlikely to slow down their efforts to comply with the new global regulatory standards despite a slip-up by European rulemakers in getting Basel III guidelines transposed into law.