hybrid security

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Hybrid security

A convertible security whose optioned common stock is trading in a middle range between the par value of the root security and the market value of the security it is convertible into, causing the convertible security to trade with the characteristics of both a fixed income security and a common stock instrument.

Hybrid Security

A security that combines features of two or more different investment vehicles. The most common example is a convertible bond, which is a bond that the holder may exchange for stocks. This combines the guaranteed payments of a bond with a stock's potential for equity.

hybrid security

A security that has features characteristic of two or more securities. A convertible bond, for example, is a hybrid security in that it has the features (that is, interest, maturity, and principal) of an ordinary bond but is heavily influenced by the price movements of the stock into which it is convertible.
References in periodicals archive ?
Objective: In the aftermath of the recent financial crisis, the European Commission and the Regulatory Authorities have placed significant emphasis on Hybrid Securities as a tool to prevent future bail-outs of banks with taxpayers money.
The firm has launched a USD750m offer of listed hybrid securities.
Goldman moved one of its global experts on hybrid securities to Asia five years ago to begin talks with Chinese clients.
New York City time, on September 9, 2011, of its 6% Subordinated Notes due 2026 (the "Notes") to terminate each of four replacement capital covenants (collectively, the "Replacement Capital Covenants") executed by the Company in connection with various hybrid securities offerings (the "Hybrid Securities").
During the past two years, a period of financial distress for many hybrid issuers in the financial institutions sector, Fitch downgraded numerous hybrid securities when their issuers' circumstances indicated a heightened risk of loss.
In the past, KBC has issued various hybrid securities which were qualified as regulatory Tier-1 bank capital.
Supervalu's results included a nickel a share in transaction costs from the Albertson's purchase, a penny a share of expenses for stock options, and 2 cents a share for special hybrid securities issued by Supervalu.
Hybrid securities combine debt and capital characteristics.
MIPS have been a major source of aggravation for the IRS; since MIPS and similar hybrid securities were first approved as equity for balance sheet purposes, taxpayers have issued an estimated $30 billion in MIPS.
Holders of these hybrid securities will in turn be entitled to either shares in Maxtor or an equivalent quantity of cash (at Hyundai's discretion) when the securities mature in three years time.
376% Fixed-to-Floating Rate Junior Subordinated Debentures due May 1, 2067 issued by Delphi with NYSE ticker symbol DFP (the "Hybrid Securities"), as well as terminate the registration of the Hybrid Securities and the 7.