Corporate hybrids: An evolving opportunity for yield and diversification in client portfolios

The instruments blend characteristics of both debt and equity

clock • 4 min read

One asset class that continues to gain traction - albeit quietly - is the corporate hybrid bond market. Julian Marks looks at the issues advisers should be aware of...

With traditional fixed income still under pressure and market volatility lingering, many advisers and wealth managers are reassessing how to best generate income and manage risk for clients. One asset class that continues to gain traction - albeit quietly - is the corporate hybrid bond market. Once considered niche, corporate hybrids are now a recognised and rapidly growing segment of the investment-grade bond universe. For advisers seeking to build diversified, income-generating portfolios, corporate hybrids may offer a timely solution. Corporate hybrid bonds are subordinated debt in...

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