What are Hybrid Securities?

Hybrid securities are cocktails of financial markets; they are those securities or financial products that combine the features of both equity and debt. A hybrid security would pay fixed dividend which represent interest like bond but only up to certain point of time after which it may converted into stock and therefore return on it would depend on the price of stock prevailing at that point of time.

1 comment… add one

  • Sanel

    Interesting topic
    I would have like to see an example with scenarios and calculation.



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