Investors in Asia-Pacific look to rates-based hybrids for yield

Low interest rates mean market participants expect the trend for hybrid structures to continue this year, boosted by demand for yield pick-up and diversification

Australian dollar attracts dual currency note investors

The capacity of hybrid structures to combine exposures into one payout while keeping correlation between the underlying assets as low as possible is attracting yield-hungry Asian investors seeking to boost returns in the face of low interest rates.

"Rates are pretty low across the board, especially short-term, which makes it difficult to devise interesting strategies and provide additional returns," says Pierre Trecourt, head of fixed-income solutions and institutions for Asia-Pacific at Societé