The reason it is harder to classify than bonds is that it has elements of both “debt” and “equity”, while bonds are purely a debt product. And because it offers a blend of characteristics of both, it is considered more risky than other fixed income products. For this reason, brightday believes they cannot be considered either a pure defensive or a pure growth investment, and sit on the spectrum between the two.
Defensive investments and fixed income
Beginner / Advanced
What is a hybrid?
While generally classified as fixed income investments, hybrids have characteristics of both debt and equity.