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  • Hybrid Financing Instruments

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    Md Shohag Ali
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    Hybrid Financing: Understanding and Using Modern Hybrid Financial Instruments • Fundamental concept of hybrid financial instrument • Definition of Hybrid Security with examples. • Why and how hybrid securities are beneficial to investors? • Besides cost, what other factors should be considered when using hybrid securities? • Illustrate the concept of Systematic Risk Effect of Hybrid Securities in details • From the view point of modern finance, define the concept and implication of a structured product or a market linked investment • Discussion on main features and Purpose of hybrid financial instrument • Discussion on key pros and coins (Advantages & Disadvantages) of hybrid financial instrument • Types of Hybrid Financing o Preference Capital (How does preferred stock differ from common equity and debt?) o equity default swaps o warrant o Leasing (Analysis: Lease vs. Borrow and Buy) o Convertible Debenture • Discuss Hedging and Managing New financial Instruments: The Functional Method • Applications (Scope of Implications) of Hybrids in Global Corporate Financing • Implication of Collateralized Mortgage (Debt) Obligations and Asset-Backed Securities in Global Financial Market • From your personal point of View, what are the major micro and macro-economic determinants would be responsible for global financial crisis and recession? • Integrate specifically the role of Hybrid Financing and Financial Leverage for the Global financial crisis and recession • Discuss Global Markets & Financial Instruments in the Next Decade (Your Speculations, Recommendation & Suggestions)

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    46698922 Hybrid Financing Instruments

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    Hybrid Financing: Understanding and Using Modern Hybrid Financial Instruments • Fundamental concept of hybrid financial instrument • Definition of Hybrid Security with examples. • Why and how hybrid securities are beneficial to investors? • Besides cost, what other factors should be considered when using hybrid securities? • Illustrate the concept of Systematic Risk Effect of Hybrid Securities in details • From the view point of modern finance, define the concept and implication of a structured product or a market linked investment • Discussion on main features and Purpose of hybrid financial instrument • Discussion on key pros and coins (Advantages & Disadvantages) of hybrid financial instrument • Types of Hybrid Financing o Preference Capital (How does preferred stock differ from common equity and debt?) o equity default swaps o warrant o Leasing (Analysis: Lease vs. Borrow and Buy) o Convertible Debenture • Discuss Hedging and Managing New financial Instruments: The Functional Method • Applications (Scope of Implications) of Hybrids in Global Corporate Financing • Implication of Collateralized Mortgage (Debt) Obligations and Asset-Backed Securities in Global Financial Market • From your personal point of View, what are the major micro and macro-economic determinants would be responsible for global financial crisis and recession? • Integrate specifically the role of Hybrid Financing and Financial Leverage for the Global financial crisis and recession • Discuss Global Markets & Financial Instruments in the Next Decade (Your Speculations, Recommendation & Suggestions)

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    53 views6 pages

    Hybrid Financing Instruments

    Uploaded by

    Md Shohag Ali
    Hybrid Financing: Understanding and Using Modern Hybrid Financial Instruments • Fundamental concept of hybrid financial instrument • Definition of Hybrid Security with examples. • Why and how hybrid securities are beneficial to investors? • Besides cost, what other factors should be considered when using hybrid securities? • Illustrate the concept of Systematic Risk Effect of Hybrid Securities in details • From the view point of modern finance, define the concept and implication of a structured product or a market linked investment • Discussion on main features and Purpose of hybrid financial instrument • Discussion on key pros and coins (Advantages & Disadvantages) of hybrid financial instrument • Types of Hybrid Financing o Preference Capital (How does preferred stock differ from common equity and debt?) o equity default swaps o warrant o Leasing (Analysis: Lease vs. Borrow and Buy) o Convertible Debenture • Discuss Hedging and Managing New financial Instruments: The Functional Method • Applications (Scope of Implications) of Hybrids in Global Corporate Financing • Implication of Collateralized Mortgage (Debt) Obligations and Asset-Backed Securities in Global Financial Market • From your personal point of View, what are the major micro and macro-economic determinants would be responsible for global financial crisis and recession? • Integrate specifically the role of Hybrid Financing and Financial Leverage for the Global financial crisis and recession • Discuss Global Markets & Financial Instruments in the Next Decade (Your Speculations, Recommendation & Suggestions)

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    Hybrid Financing Instruments

    Preference Share capital. Convertible debenture/bonds. Warrants. Options.

    Preference Share Capital


    Preference share capital is a unique type of long -term financing in that it combines some of the features of equity as well as debenture. As a hybrid source of financing it is similar to debenture insofar; It carries fixed rare of dividend. It ranks higher than equity as claimant to the income.

    It normally does not have any voting rights It does not have share in residual earnings. It also partakes some of the attributes of Equity Capital namely: Dividend paid after tax profit i.e. it is not tax deductable Preference dividend payment depends on the discretion of management. Irredeemable preference shares have no fixed maturity date .

    Features of Preference Shares:


    Prior claim on income Cumulative dividend Redeem ability Fixed Dividend

    Convertibility Voting Rights Participation Features Evaluation

    Thank

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