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.

This article is part of the global guide to equity capital markets law and the global guide to debt capital markets law. For a full list of jurisdictional Q&As visit www.practicallaw.com/equitycapitalmarkets-guide and www.practicallaw.com/debtcapitalmarkets-guide.