In the early 1990s Australia’s big four banks turned to a new form of capital to bolster their balance sheets as recession raged, and equity funders went on strike.

By offering to pay investors a higher interest rate in exchange for accepting that they be tipped-in in times of crisis, the bank hybrid market was born. The word hybrid refers to the securities’ unique mix of debt, in that it pays a set level of income, and equity, in that it ranks below bondholders and depositors.