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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 (might need AFR login access)

Also see related information on Macquarie Alternative Listed Protected Securities



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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.


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