US hybrid market soldiers on despite more NAIC troubles.

The article looks at hybrid bond issue deals launched in the U.S. despite the sell-offs being experienced by the corporate sector. The deals suffered more than 10 basis points widening of spreads after the National Association of Insurance Commissioners (NAIC) reclassified certain hybrid structures as common equity. The Bond Market Association urges the NAIC to inform the public of the reasons for such decisions. The loss of liquidity in the institutional market has led to the launch of deals with wider spreads.