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 ?
At press time, North Dakota Insurance Commissioner Jim Poolman reportedly was still trying to implement a compromise that would let insurers continue to classify hybrid securities they already own as debt but require them to classify newly purchased hybrid securities as stock.
Specifically, the British bank's hybrids were upgraded to A- from BBB+ and the Norwegian lender's hybrid securities rating went up to BBB+ from BBB.
Insurers are concerned over the classification of hybrid securities as common stock in their portfolios and it has them asking state insurance regulators what it will mean for the amount of capital they need to hold.
At present, Fitch is reviewing its approach regarding the equity credit of banks' hybrid securities (see 'Related Research' at the end of this release) and therefore is not assigning an equity class to the aforementioned issue of subordinated preferred notes.
17 February 2010 A[cent sign]a'[not sign]a[euro]oe Moody's raised the ratings on certain hybrid securities of KBC Bank NV, part of Belgium's KBC Groep NV (EBR:KBC), ending a downgrade review.
Fitch currently applies 75% equity credit to hybrid securities (exclusively cumulative, perpetual preferred stock) for its U.
BANKING AND CREDIT NEWS-12 February 2010-Moody's axes SocGen hybrid securities on updated rating guidelines, investment status maintained(C)1994-2010 M2 COMMUNICATIONS http://www.
Fitch has also assigned an expected rating of 'B+' to Ixe's planned issue of hybrid securities.
LONDON & CHICAGO & NEW YORK -- The poor performance of bank hybrid securities as a source of loss absorbing capital over the last three years has precipitated a review by Fitch Ratings of its hybrid capital criteria.
Due to its high loss-absorption features, this issue will be considered Class D (75% equity-credit) under Fitch's approach to assess banks' capital provided by hybrid securities.
The rating actions implement Fitch's recently published revised guidelines for rating preferred stock and hybrid securities ('Rating Hybrid Securities', dated Dec.
Fitch recently announced a pending change to its ratings and notching of hybrid securities which is expected to result in the ratings of many performing hybrids that rank as junior securities being downgraded by one notch.