Contingent capital securities: an overview | Practical Law
This article provides a brief overview of the principal structuring, legal, tax, regulatory and ratings considerations related to the issuance of contingent capital securities, which are a type of hybrid security. In particular, it: provides a general overview of contingent capital securities; examines how hybrid securities performed during the financial crisis; outlines the regulatory reforms introduced in the wake of the financial crisis; considers the emergence of contingent capital instruments; reviews the terms of some specific contingent capital securities; and discusses various legal, tax and ratings considerations.