Ratings shake-up threatens to take the fizz out of buoyant hybrids market
Indications by Moody's that it may downgrade certain types of hybrid securities have perturbed investors still sensitive after the NAIC's recent flirtation with classifying hybrids as equity
A wealth of corporate hybrid issuance hit the market in December, despite renewed concerns about the ratings treatment for such securities. French insurer CNP launched a EUR1.25 billion transaction on December 12, and Japan's Sumitomo Bank brought a dual-tranche £500 million/$1.65 billion trade to market on December 14.
They followed success stories in the US earlier that month, as Axa's $1.5 billion deal was oversubscribed to the tune of $12 billion, Washington Mutual's $400 million deal
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