Hybrids collateral damage as share market pummelled

27 June 2016

 

During the GFC, when equity prices fell over an extended period of months, hybrid securities also fared poorly and, in some case, bank-issued hybrids were trading at less than 70% of face value. Prices recovered but the length of time varied considerably. Since then, some commentators have pointed to the correlation of hybrids prices to equity prices and decided hybrids are possibly inappropriate to investors who require assets uncorrelated to...

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