German insurer Allianz has finally brought its much-anticipated €1.5 billion hybrid debt deal to market. Analysts believe that the issue could signal a much-needed diversification of the perpetual bond market’s issuer base.
The issue will help protect Allianz’s credit ratings by improving the quality of its capital structure. Under Moody’s methodology, Allianz will be able to classify the capital raised as half equity, half debt. And under S&P’s calculations, Allianz’s capital adequacy will