What is a Hybrid Security?

With relatively few hybrid securities listed on the ASX an investor could be forgiven for not knowing what one is. People will naturally avoid things they don’t understand which can sometimes mean missing out on a good opportunity. In the case of hybrids, they are not difficult to understand once some of the key features are outlined. The Rivkin Income portfolio almost exclusively holds hybrid securities and is a great way to obtain a good return for relatively low risk. Here we will explain in simple terms the mechanics of a hybrid security.