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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Call risk · All lessons

Preferred Shares and Income

Understand dividends, priority, reset rates, redemption and the limits of income protection.

Beginner

Callable preferred shares and the risk of paying above par

An issuer call can return a security at a contractual amount below your purchase price. Evaluate the redemption scenario before interpreting an attractive distribution yield.

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