You are viewing:-
you're reading...
0.General, 1.Market Observations, 2.financial advice, 8.Was Sticky

26 Aug 2014 (AFR) Complex risk must be fairly valued – Hybrids could fall 35pc or more in crisis

[COMMENT: This article provides a sobering warning about hybrid securities. Over the years there have been a few that have simply taken the entire investment. In some cases, the investor might just have well as flushed their funds down the toilet. BUYERS BEWARE! This article is a must-read!]

(26 August 2014, AFR, p45, Christopher Joye)

‘The new bank hybrid securities, which have no fixed term and switch into shares at the worst possible times, would likely have fallen in value by more than 35 per cent ­during the global financial crisis. This is far removed from the popular claim they are super-safe “quasi cash” substitutes that should pay much lower returns than bank shares.’

Read the full story at AFR.com (might need AFR login access)

Also see related information on Macquarie Alternative Listed Protected Securities

 

Advertisements

About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Advertisements
%d bloggers like this: