Hybrid securities – yield and quality combined

27 October 2020

By guest contributor Brad Dunn, Senior Credit Analyst, Daintree Capital

 

  In these times where every basis point counts, hybrids stand tall, offering the highest yields for an investment-grade credit rating. As a reminder, a credit rating is simply an opinion of the likelihood that a bond will default during its time on issue. While hybrids are attractive on a gross yield or spread basis, there is no such thing as a free lunch. These higher relative returns come with...

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