Hybrid Capital Instruments

On May 15th 2019, we were happy to welcome in Brussels about 30 senior representatives from various Banks and Insurance Companies for a new Reacfin’s Seasonal Breakfast.

The topic of the day was Hybrid Capital Instruments. We among others presented the rationale for such instruments under the current market conditions. We also discussed in which cases hybrid Tier One and Tier Two instruments could prove opportunities for larger and/or smaller financial Institutions.

This conference-breakfast was hosted by our partners, professors Jean Dessain (IESG in France) and François Ducuroir (UCLouvain).

Topics covered included:

  • Rationale for Hybrid Capital
  • Current conditions: market appetite and prices
  • Regulatory requirements for Insurers (Solvency II) and Banks (CRD IV / CRR)
  • Accounting-, rating- and tax treatment
  • Solutions for smaller-sized financial institutions
  • Practical process to issue Hybrid Capital Instruments

Interested readers can download the slides of this presentation here: