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

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