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 ?
Goldman Sachs was one of the first to spot the potential in China for preferred shares, a form of hybrid security which listed companies can sell to raise capital with minimal dilution in the value of shares held by existing stakeholders.
compares the typical features of two forms of hybrid security - a capital note issued by a bank and a subordinated note issued by a company - to shares, corporate bonds and bank term deposits, to identify the additional risks investors may be taking on; and
Security specialist Kaspersky Lab this week called on cyber security departments worldwide to adopt hybrid security systems.
25 February 2010 A[cent sign]a'[not sign]a[euro]oe Moody's has reduced the rating assigned to a hybrid security of Dutch bank Friesland Bank to Baa2 from Baa1 to reflect a revised rating approach.
A hybrid security is an unsecured equity instrument, which is subordinated to the company's debt obligations.
The hybrid security issue, which combines debt and equity features, is rated two notches lower than the 'twAA-' long-term counterparty credit rating on Hua Nan because of its subordinated status, the inclusion of a mandatory interest payment deferral clause that is subject to a regulatory capital test, and the financial status of the bank.
Bibliotheca also announced two new BiblioHybrid products: BiblioGate Hybrid security gates and the Biblio SelfCheck Hybrid solution for patron self-service.
Buckley said that comparability with other ratings is important to those looking at the ratings of hybrids and consequently, the new system attempts to make it easier to compare ratings with other ratings on a hybrid security.
This is the first time for a nonfinancial firm to issue trust preferred securities, a hybrid security that has characteristics of both debt securities and equities and is designed to minimize the dilution of shareholder value, NEC said.
Simply put, preferred shares are a hybrid security offered by companies large and small, something of a cross between bonds and common stock.
Despite experiencing acute stress (and even failure), many banks continued to pay hybrid security coupons.