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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Fixed Income

Why I used to tell people not to buy my asset class

Why I used to tell people not to buy my asset class

Man bites dog?

Stephen Snowden
clock 11 December 2025 • 4 min read
Partner Insight: A terrific environment for bonds

Partner Insight: A terrific environment for bonds

Sara Devereux, global head of fixed income at Vanguard, says bond investors are in a rare sweet spot – strong yields, low risk and big potential.

Sara Devereux, Global Head of Fixed Income Group, Vanguard
clock 04 November 2025 • 4 min read
The high (opportunity) cost of passive fixed income

The high (opportunity) cost of passive fixed income

'These aren't just numbers - they're missed opportunities'

Bryn Jones
clock 31 October 2025 • 3 min read