Bonds and Hybrids

The Role of Hybrids

The Role of Hybrids

December 30, 2013Bonds and Hybrids0

Hybrids are a form of interest rate security that share some features of bonds and some features of equities. They offer the opportunity for the investor to receive regular dividend (or coupon) payments (that may be higher than what you might receive from bonds) and the opportunity to get a full return of your original capital after a specified time period (just like bonds) – assuming the is... »

A Note About Bonds

A Note About Bonds

December 26, 2013Bonds and Hybrids0

As you may have noticed, we haven’t written a lot about bonds! It’s not that we don’t like bonds, we do – bonds are good for diversification and as a counter-cyclical asset to shares (ie. bonds tend to do well when shares don’t), and to reduce risk and improve risk-adjusted returns. That being said, we feel that most people should be able to adequately meet most of their lo... »