Hybrid

European bank stocks have collapsed so far this year whilst their credit default swaps have risen rapidly. Surely the credit and equity markets are telling us something? – Europe’s nascent economic recovery is over? Negative rates are killing net interest margins? They don’t have enough capital?…the list goes on. Whilst all the above cannot be ignored and investors need to select bank stocks carefully...

European banks intend to raise about €40 billion in Additional Tier 1 bonds in 2016, but fears over the high-risk contingent convertible debt have frozen the market since the beginning of February.

If you’ve been brainstorming your investment resolutions for 2016, you’re not alone. The beginning of a year is a great time to revisit your investment portfolio. So how would convertible bonds (CBs) fit into an investor’s new year’s resolution?

ING Group intends to issue securities that qualify as Additional Tier 1 capital under CRD IV / CRR. The intended issuance is expected to further strengthen ING’s capital base.

ING Group announced today it will redeem the EUR 1.5 billion 8% ING Perpetual Hybrid Capital Securities per the call date of 18 April 2014, in line with ING’s goal to continuously optimize its capital structure and lower its funding costs.