Banks target growing Asian hybrid fee pool

Banks in Asia are beefing up their hybrid businesses as the product gains popularity among corporates in Asia and in anticipation of a rise in bank capital issuance after Basel III takes effect from 2013.

The fee pool for Asian hybrids said by two debt specialist to be in the region of $50 million for the past two years has become more lucrative. And as a result, more banks have shifted hybrid specialists to Asia, an indication of where they see opportunity.

“When I first came to Asia 12 years ago, it was quite innovative for a house to have someone focused on capital products for financial...