Hybrid securities can be complex and often classified as alternatives investments. Having characteristics
of both shares and debt, hybrid securities pay a predictable rate of return or dividend for a certain
period of time, usually until a maturity or conversion date. At that date the holder has a number of
options including converting the securities into the underlying share or cash or roll over for another term.
So they may seem like a fixed interest type of investment, however unlike fixed interest, there is an
option to convert to the underlying share. More common examples include convertible and converting
Because of the somewhat complex nature of these investments, they are for sophisticated investors
See alternative assets.