Skip to content
Subscriber Only

Hybrid Bond Gamble Pays Off as Stimulus Spurs Gains

Investors who bought record amounts of hybrid notes from European companies seeking to protect credit ratings as they increased debt are being rewarded with gains outstripping both junk and investment-grade bonds.

About 75 percent of the 29 billion euros ($39 billion) of hybrid securities sold this year are trading above their issue price, according to data compiled by Bloomberg, beating the 67 percent of equivalent junk debt and 39 percent of high-grade new issues. Storebrand ASA’s notes due April 2043 lead increases with a 7.8 percent jump, followed by French utilities GDF Suez and Electricite de France SA with more than 5 percent gains.