...Buoyant Demand for Hybrids Continues in 2015: Issuance in the first half of the year amounted to EUR21.8bn, a material pick-up over the highs achieved in 2013 and 2014, a time when corporate hybrids were established as a common source of funding. Quantitative easing in the US, UK and Europe has reduced rates to unprecedented levels and slowly improving macroeconomic fundamentals have contributed to a tightening of credit spreads. On an inflation-adjusted basis returns for `A' and `BBB' rated senior unsecured paper do not look attractive. Asset managers are looking for yield. Capex-Intensive Industries Take the Lion's Share: Over the last three or four years utility companies have used hybrid capital to preserve balance-sheet strength and credit profiles amid a tougher operating environment, offsetting the impact from adverse commodity price trends or political intervention. In 2015 this theme has spilled over into the oil and gas sector, where changing supply and demand dynamics have seen...
