Hybrid-CoCos Trading

KNG provides expertise in the growing sectors of Corporate Hybrid bonds and Bank Capital.

Corporate Hybrid bonds are issued by non-financial companies to enhance their capital position. They have a mixture of bond-like and equity-like characteristics. They are subordinated, with significantly higher yields than senior debt, but with potential coupon deferral and extended maturity. The market has grown to over USD180bn, with most issuance in EUR and GBP

Bank Capital includes regulatory compliant AT1 bonds and non-compliant ‘legacy’ securities. Trading of these instruments requires good understanding of regulatory developments as well as fundamental credit and supply factors.

KNG speaks to the dedicated funds in these sectors, plus wider bond funds and other market participants.