 In this report we compare corporate hybrids in Europe and Asia, discussing the origins and growth of the respective markets, structural features, composition, historical performance, valuations and trade ideas.

 In Europe, hybrid structures are largely homogenous, designed to lose equity credit with S&P at the first call date. In Asia there are a mix of hybrid structures (including a number of senior instruments), with the most common featuring a large coupon step-up.

 Corporate hybrids have delivered better long-term total returns than the broad IG and HY segments in both European and Asian markets.

 European hybrids generally offer better value measured by hybrid-tosenior ratios, partly due to very tight senior spreads in the region.