Hybrid security

A hybrid bond (English hybrid) is a quasi-equity, subordinated corporate bonds with very long maturities or no maturity limit. The termination by the issuer from a predetermined date is possible. In addition, the agreed coupon payments can be suspended or postponed under certain conditions.

Through an interest rate premium over conventional corporate bonds, the investor should receive compensation for the increased risk, which may range, for example, in the case of insolvency of the issuer to the total loss.

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