The global convertible bond market is set for a sea change triggered by global volatility and rocky markets, which will drive an increase of hybrid and Islamic bonds, with a particular surge from Europe, the Middle East and Africa, according to a new report from Barclays Capital.

The equity-linked market is set for a boost "from further issuance of equity-like convertibles such as hybrids and mandatories to help finance acquisitions and bolster capital", according to Barclays Capital analysts Luke Olsen and Heather Beattie in the 2008 Convertible Market Outlook.