Hybrids, take two: Lloyds in contingent capital frame.

The article analyzes the issue that Lloyds Banking Group may remove interest payments on the 15.5 billion (bn) euros of tier one debt. It furthers that the bank plans to offer the bondholders contingent capital as part of its measures to raise 25bn of the core capital from the asset protection scheme of Great Britain's government. Bank of America Merrill Lynch analysts commented that the move of Lloyds Banking Group can potentially deliver excellent returns to bondholders in the future.