Hybrid breakthrough for US companies.

The article assesses the performance of the corporate bond market in the U.S. in 2005 as banks competed to launch the first attractive tax-deductible hybrid security. Citigroup and Goldman launched a $540 million 40-year non-call 10 offering for Stanley Works in November. Tax deductible hybrids provide corporates and insurance companies a new layer of capital to consider for an acquisition financing package. Metropolitan Life Insurance Co. raised a $2.1 billion of non-cumulative perpetual preferred stocks in May for the acquisition of Travelers Life & Annuity.