Hybrid capital

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
• Financial instrument
• Financial reporting
• Hybrid debt
• Kay Review
• Liabilities and equity
• Mezzanine
• Ordinary shares
• Own funds
• Regulation
• Share capital
• Total Loss Absorbing Capacity