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.
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.
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.