Investors underestimate risk in hybrids

26 September 2016

 

Professor Kevin Davis, a leading academic and member of the Financial Services Inquiry committee, and Michael Saba, a leading fixed income analyst from Evans and Partners have released a paper focusing on the risks of hybrid securities. In it they question whether sophisticated products designed to bolster bank capital were well understood by the retail investors that have bought billions of dollars’ worth of them in the past year alone....

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