Difference between revisions of "Hybrid"

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* [[Clearing House Interbank Payment System]]
 
* [[Clearing House Interbank Payment System]]
 
* [[Convertible debt]]
 
* [[Convertible debt]]
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* [[Electric vehicle]]
 
* [[Faster Payments Service]]
 
* [[Faster Payments Service]]
 
* [[Green finance]]
 
* [[Green finance]]

Latest revision as of 16:13, 12 August 2021

1.

Hybrid is 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.


3. Green finance - greener technology.

The use - in a single system - of both traditional and greener technologies.

For example, vehicles that can run either on electric batteries or more traditional fuels such as petrol or diesel.


4.

More broadly, any structure, instrument or entity with mixed, or intermediate, characteristics between two or more other, simpler or standardised structures.


Intra-day net settlement
"There are two basic ways that domestic clearing systems settle:
  • end-of-period net settlement; and
  • real-time gross settlement.


A third option is a hybrid of these two: intra-day net settlement. This is practised by a number of systems, such as the US Clearing House Inter-bank Payment System (CHIPS) and the Faster Payments Scheme in the UK."
Payments and payment systems - the Treasurer's Wiki.


The term 'hybrid' originates from horticulture and farming, where hybrid plants and animals are a biological cross between two different species or breeds.


See also