FOLITIC / HYBRID SECURITIES

Hybrid Securities Trading Guide

Understand securities that combine features of debt, equity and derivatives. Follow eight stages covering preferred shares, convertibles, corporate hybrids, bank capital and structured notes.

Start with What makes a security a hybrid, then follow the next lesson links. Explore 32 lessons with worked examples, exercises and further reading.

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AT1 capital · All lessons

Bank Capital and Contingent Conversion

Examine capital triggers, coupon cancellation, conversion and potential principal losses.

Intermediate

Additional Tier 1 capital and what loss absorption means

Additional Tier 1 instruments are designed to absorb losses under their terms and the applicable banking framework. Their income features should never be confused with deposit...

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