hybrid financing

Hybrid financing combines elements of both debt and equity to raise capital. It involves financial instruments that have features of both, such as convertible bonds or preferred shares. This approach provides companies with flexibility, offering benefits like lower interest costs or added investor protections. For investors, hybrid instruments can offer steady returns with some potential for growth or conversion into equity. Overall, hybrid financing balances risk and reward, helping companies meet diverse funding needs while appealing to a broader range of investors.