“Hybrid security” is a generic term used to describe a security that combines elements of debt securities and equity securities. Hybrid securities typically promise to pay a rate of return (fixed or floating) until a certain date, in the same way debt securities do. However, they also have equity-like features that can mean they may provide a higher rate of return than regular debt securities. In some cases, this is because they give the holder or the issuer an option to convert the hybrid securities into equity securities (typically ordinary shares), which will give the holder and “equity kicker” if the underlying security performs well or for the issuer a “capital kicker” if this is needed. In other cases it may be that the hybrid securities have equity-like risks attached and the issuer has to pay a higher rate of return to compensate investors for those risks.For information on the types of Hybrid Securities follow this link:« Back to Glossary Index
Follow us on TwitterTweets by @CurveSecurities
GIVE US A CALL
Ph (02) 9690 2188
1800 1 Curve (1800 128 783)
SEND US AN EMAIL
PAY US A VISIT
Level 2, 17 Randle St,
Surry Hills, NSW, 2010
Recent commentary by the Curve team
Curve Securities: We elevate performance
ABN 94 143 558 598
AFS Licence 405751
This website is not intended to imply a recommendation or otherwise constitute advice in relation to financial products. It does not take into account your investment objectives, financial situation or particular needs. Before acting on any information you obtain from this website you need to consider the appropriateness of the information in lieu of your investment objectives, financial situation or needs.
© 2014 Copyright - Curve Securities Australia
site by CO-Creativ.