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

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