Capital Securities Perpetual Step Up Call 2026
The global market for capital securities has witnessed significant growth over the past decade, driven by increasing investor demand for hybrid securities that offer a blend of fixed-income and equity-like characteristics. As of 2022, the market size for perpetual securities was estimated at approximately $500 billion, with a projected growth rate of 5% annually through 2026. The trend towards lower interest rates has further fueled interest in perpetual step-up securities, highlighting their strategic appeal for investors seeking yield in a low-rate environment.
1. HSBC Holdings PLC
HSBC has been a leading issuer of capital securities, with a significant market share of around 15% in the global perpetual securities market. In 2021, the bank issued approximately $3 billion in perpetual securities, benefiting from strong investor confidence and robust financial performance.
2. Barclays PLC
Barclays, another key player, holds approximately 10% of the market share. The bank issued over $2 billion in capital securities in 2022, leveraging its strong brand reputation and extensive investor base to support its perpetual step-up calls.
3. JPMorgan Chase & Co.
JPMorgan is a major player in the capital securities market, with $4 billion in perpetual securities issued in 2021. The bank’s strong credit rating and diversified portfolio contribute to its leading position, commanding about 12% market share.
4. Citigroup Inc.
Citigroup has made substantial strides in the capital securities sector, issuing $2.5 billion in perpetual securities in 2022. With a market share of around 9%, Citi remains competitive, focusing on innovative financial solutions to attract investors.
5. Bank of America Corporation
Bank of America issued approximately $3.5 billion in capital securities in 2021, securing a market share of about 11%. The bank’s strong financial health and strategic issuance plans have helped maintain investor interest.
6. UBS Group AG
UBS has been active in the perpetual securities market, with a notable issuance of around $2 billion in 2022. The bank commands about 6% of the market, benefiting from its global reach and strong wealth management services.
7. Credit Suisse Group AG
Credit Suisse has issued around $1.8 billion in perpetual securities, holding approximately 5% market share. The bank’s focus on stability and risk management has made it a preferred choice for conservative investors.
8. Standard Chartered PLC
Standard Chartered has issued approximately $1.5 billion in capital securities in 2022, capturing about 4% of the market. The bank’s strong presence in emerging markets has provided it with a unique advantage in attracting foreign investment.
9. Deutsche Bank AG
Deutsche Bank has been a prominent issuer, with around $2.2 billion in perpetual securities issued in 2021. The bank holds about 7% market share, focusing on innovative products to enhance its portfolio.
10. Royal Bank of Canada
The Royal Bank of Canada (RBC) reported $1.7 billion in perpetual securities issued in 2022, maintaining a strong market share of 5%. RBC’s robust financial position and commitment to shareholder value make it a strong competitor.
11. Wells Fargo & Company
Wells Fargo has issued approximately $2 billion in capital securities, holding a market share of around 6%. The bank’s strategic approach to capital management has resonated well with investors seeking stable returns.
12. BNP Paribas SA
BNP Paribas has seen success in the capital securities market, issuing $2.3 billion in perpetual securities in 2021, thereby capturing about 8% market share. Its diversified services and global reach enhance its attractiveness.
13. ING Groep NV
ING has issued around $1.4 billion in capital securities, holding a market share of approximately 4%. The bank’s strong focus on digital transformation and customer experience has bolstered its investor appeal.
14. Rabobank
Rabobank has issued about $1.1 billion in perpetual securities in 2022, with a market share of roughly 3%. Its emphasis on agricultural financing and sustainability has drawn interest from socially conscious investors.
15. Mitsubishi UFJ Financial Group
Mitsubishi UFJ has managed to issue approximately $1.6 billion in capital securities, holding a 4% market share. Its strong presence in Asia and commitment to innovation contribute to its solid market performance.
16. Sumitomo Mitsui Trust Holdings
Sumitomo Mitsui issued about $1 billion in perpetual securities in 2022, capturing around 3% market share. The company’s focus on asset management and long-term investment strategies has attracted investors.
17. DNB ASA
DNB has issued approximately $900 million in capital securities, holding a market share of 2%. The bank’s strong capital position and customer base in Norway support its competitive edge.
18. Nordea Bank Abp
Nordea reported $850 million in perpetual securities issued, maintaining a market share of 2%. The bank’s strategic initiatives in sustainability and digital banking have enhanced its appeal to investors.
19. KBC Group NV
KBC has issued around $800 million in capital securities, securing roughly 2% market share. The bank’s strong regional presence in Europe allows it to cater effectively to local investors.
20. Intesa Sanpaolo SpA
Intesa Sanpaolo has issued about $750 million in perpetual securities, holding a market share of 2%. Its robust retail banking services and commitment to innovation have made it a popular choice among investors.
Insights
The perpetual step-up call securities market continues to evolve, with major financial institutions increasingly leveraging these instruments to optimize their capital structures amid changing regulatory landscapes. Recent statistics indicate that the issuance of perpetual securities is expected to rise by 6% annually through 2026, driven by ongoing low-interest rates and a growing appetite for yield among investors. Additionally, as global economic conditions stabilize post-pandemic, we anticipate that more institutions will issue perpetual step-up calls to take advantage of favorable market conditions, further enhancing liquidity and market depth.
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