Hybrid: Difference between revisions
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1. | |||
A term used to describe a financial instrument which displays characteristics of both debt and equity. | A term used to describe a financial instrument which displays characteristics of both debt and equity. | ||
Such instruments might be designed to be an intermediate (or mezzanine) category of capital between equity and debt, or to have some of the risk absorbing characteristics of equity and, ideally, the tax efficiency of debt. | Such instruments might be designed to be an intermediate (or mezzanine) category of capital between equity and debt, or to have some of the risk absorbing characteristics of equity and, ideally, the tax efficiency of debt. | ||
These are 'hybrid' financial instruments. | |||
2. ''Tax'' | |||
The term 'hybrid' can also refer to an entity which is treated differently for tax purposes in different tax jurisdictions. | |||
== See also == | == See also == | ||
* [[Convertible debt]] | * [[Convertible debt]] | ||
* [[Hybrid entity]] | |||
* [[Mezzanine]] | * [[Mezzanine]] | ||
* [[Warrant]] | * [[Warrant]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Revision as of 16:25, 11 October 2016
1.
A term used to describe a financial instrument which displays characteristics of both debt and equity.
Such instruments might be designed to be an intermediate (or mezzanine) category of capital between equity and debt, or to have some of the risk absorbing characteristics of equity and, ideally, the tax efficiency of debt.
These are 'hybrid' financial instruments.
2. Tax
The term 'hybrid' can also refer to an entity which is treated differently for tax purposes in different tax jurisdictions.
