Hybrid capital: Difference between revisions
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imported>Doug Williamson (Create page. Source: KPMG webpage https://home.kpmg/uk/en/home/insights/2020/02/hybrid-capital-instruments.html and UK Gov https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/796328/Hybrid_capital_instruments.pd) |
imported>Doug Williamson (Layout.) |
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*Being regarded as equity for credit rating purposes. | *Being regarded as equity for credit rating purposes. | ||
*Qualifying as regulatory capital, especially under the regulatory capital rules for banks and insurance companies. | *Qualifying as regulatory capital, especially under the regulatory capital rules for banks and insurance companies. | ||
Relevant debt features may include the tax-deductibility of coupon payments. | Relevant debt features may include the tax-deductibility of coupon payments. | ||
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* [[Equity]] | * [[Equity]] | ||
* [[Equity instrument]] | * [[Equity instrument]] | ||
* [[Hybrid]] | |||
* [[Financial instrument]] | * [[Financial instrument]] | ||
* [[Financial reporting]] | * [[Financial reporting]] | ||
Latest revision as of 12:19, 26 November 2020
Law - financial reporting - tax - credit rating.
Hybrid capital instruments have features both of equity and of debt.
Relevant equity features may include:
- Entitling the issuer to defer or cancel coupon (interest) payments.
- Being treated as equity for financial reporting purposes.
- Being regarded as equity for credit rating purposes.
- Qualifying as regulatory capital, especially under the regulatory capital rules for banks and insurance companies.
Relevant debt features may include the tax-deductibility of coupon payments.
See also
- An introduction to equity capital
- Bank supervision
- Capital
- Capital instrument
- Capital employed
- Capital structure
- Common equity
- Common stock
- Compound instrument
- Coupon
- Credit rating
- Debt
- Distribution
- Dividend
- Equity
- Equity instrument
- Hybrid
- Financial instrument
- Financial reporting
- Hybrid debt
- Kay Review
- Liabilities and equity
- Mezzanine
- Ordinary shares
- Own funds
- Regulation
- Share capital
- Total Loss Absorbing Capacity
