It's been a while since I posted, so I figure I would post a story about ArcerlorMittal and their Hybrid security.
对于那些不知道混合安全性的猴子来说，它是一种有效且看起来像债券的安全性（通常是永久性的债券），但出于会计目的，它将其计算为公平（部分或全部）。
ArcelorMittal had an outstanding High Yield Hybrid bond that was perpetual and had a coupon of 8.75%. This particular security was very attractive for investors due to its floating reset after its first call, which was in 2018.
1月20日之前bond was trading在108-110范围内。但是，这种债券有一个非常重要的警告：评级代理活动。
隐藏在此安全性招股说明书的第51页中，对评级代理活动是什么是简短的解释。基本上，如果评级机构之一（Moody's，Fitch，S＆P）改变了它们对混合动力车的股权处理方式，则Arcelor有权在101上调用安全性。
After 2010, many newly issued Hybrid bonds have this language in their prospectus, so it's not exactly a secret. However until last week, no one ever thought that it would come to play. Let me explain:
去年7月，穆迪（Moody）修改了他们要处理混合动力的股本资本部分的方式。基本上，高收益发行人的混合体将获得0股本资本处理。回到宣布时，几笔债券的价格下跌了，但是所有发行人（如Arcelormittal）都没有宣布提前赎回。人们突然忘记了，或者有信心发行人不会应用此警告，并且HYhybrids traded higher and higher towards the end of the year.
On January 20, Arcelor decided out of the blue to call this bond at 101. The bond's bid that day was 108.50. Every bond holder of the $650m issue instantly lost ~7.50%.
Since then, the Hybrid market has been rattled. Hybrids traded down (The risk-off sentiment of the past week helped push the prices down) and other issuers have taken the advantage to use the caveat to call their own hybrids (albeit the bonds were trading closer to the 101 call). What's funny is that NO ONE was expecting this to happen.
我设法掌握了拥有最高欧洲信用分析师的3家大投资银行的研究。所有人最近都有报道称，申请评级机构活动的机会接近0。其中一份报告甚至是1月15日起！
So what did I learn from this:
1. It is important to read the prospectus, especially if you are investing in complicated structures like a Hybrid High Yield Bond (and trust me, 99% of investors don't get past the cover page [IMO])
2. Sometimes, companies will make the decision to burn their investors, even if it only makes the slight economic/accounting sense
3.即使信息在他们的脸前，即使是华尔街上最聪明的头脑也无法正确。我相信欧洲有许多分析师被投资者撕开了
4.评级机构对方法论的法规变化/变化可能会严重影响整个资产类别
5. ArcelorMittal will have a hard time issuing a Hybrid at a cheap price (Or, the market will forget again and Arcelor will win again!)
对于那些想了解更多信息的人，请从这里开始：
http://www.ft.com/cms/s/0/83a8c6a6-82b8-11e3-9d7e-00144feab7de.html
评论 （7)
Luckily it was only 7.50% loss, but those investors have learned their lesson now. I don't know if your aware of the whole Equity Inns preferred situation with高盛. Similar situation with filings, but investors lost way more.
http://online.wsj.com/news/articles/SB10001424127873240495045785785416030726663338
大批
thanks for the write
很好地结合了这件事。+1 SB。
So, both the issuer and issue ratings remained unchanged since summer ?
They may not have even changed the ratings at all, even in summer. Simply a change in the methodology used by the ratings agencies to determine their ratings couldtrigger the call option，即使评分保持不变。
Something similar to this happened to a lot of hybrids with Dodd-Frank, where a regulatory change suddenly makes them callable or triggers some random provision buried in the prospectus that most people never even consider.
Thebonds dropped 78月1日的积分，我认为市场第一次发生时确实对此有所反应...
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