Brand partnership • Managing Principal at Changoo & Associates(30,000+ LinkedIn Connections)
Here are some examples of hybrid funding instruments. - Convertible bonds: These are a type of hybrid security that has features of an ordinary bond but is heavily influenced by the price movements of the stock into which it is convertible. - Convertible preference shares: These are another type of hybrid security that pay dividends at a fixed or floating rate before common stock dividends are paid and can be exchanged for shares of the underlying company's stock. - Pay-in-kind toggle notes: These are a type of hybrid security where the issuing company can toggle the payment from interest rates to the additional debt owing to the investor. - Derivatives contracts: These are hybrid instruments that derive their value from the value of an underlying asset.
