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Hybrid Securities

Hybrids are products that combine the characteristics of shares and fixed interest products.

We can help you with investing in hybrids on the:

  • primary market: from companies who issue hybrids for the first time
  • secondary market: traded on the ASX.

Benefits

Hybrids:

  • generally have a higher rate of return than cash and other types of fixed interest products
  • can provide you with more protection in a market downturn - because they are a combination of securities, they are not as affected by events that would generally cause a drop in markets
  • provide you with greater security if a company winds up - if the issuer (company) winds up, holders of convertible notes are paid before shareholders
  • provide tax advantages through franking credits.

Further information

If you need more information, please contact your adviser, or call us on 1300 366 566.

Our Services

Further information

If you need more information, please contact your adviser, or call us on 1300 366 566.

What are Hybrid Securities?

Hybrids are a class of securities that have the characteristics of both an interest bearing security and a share. Examples of hybrids are convertible notes and convertible preference shares. In simple terms, the issuer of the hybrid generally pays the investor a known regular return (interest) and at maturity the investor may receive shares (equity).