Banks' interest in issuing dated deferrable hybrid capital seems to be rising. Yet these structures would not qualify as regulatory Tier 1 capital under Basel III, despite regulatory initiatives to encourage the issuance of hybrids with a greater capacity to absorb losses. Traditionally, banks have tended to issue perpetual hybrid capital because dated instruments were not eligible as Tier 1 or Upper Tier 2 regulatory capital in most countries. The emerging issuance trend puts the spotlight on the equity content of dated deferrable hybrid capital. Equity content is an important factor in Standard&Poor's Ratings Services' analysis of a bank's capitalization and creditworthiness. (Watch the related CreditMatters TV segment titled "How Does Standard&Poor?s View The Equity Content
