hybrid security


A security which contains multiple components, most frequently debt and equity. One common example of a hybrid security is a convertible bond, which is a hybrid security because it has features common to a bond, but also is dependent upon the performance of the stock for which it can be exchanged.

Use hybrid security in a sentence

You should try and make sure that you have a good hybrid security in place that will cover what you need.

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It was a hybrid security and that meant that it contained multiple components and that was knowledge we needed to have.

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John's client prefers to invest in hybrid securities, especially convertible bonds, because of a hybrid security offers more options than a common bond.

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exchangeable bond embedded derivative