Hybrid Capital

Tideway’s core focus is in fixed income credit and specifically in Hybrid Capital.

We prefer investments in regulated industries such as insurance, banking, utilities and infrastructure which form the majority of our assets.

Hybrid Capital is a form of bond that falls between senior debt and equity, typically with terms and conditions around the maturity date of the bond which guve the issuer options to defer or skip coupons. Hybrid Capital can offer equity like returns from a debt instrument with predictable returns and quantifiable risks. Most Hybrids are issued by large, well-capitalised companies with investment grade credit ratings.

Hybrid Capital offers

  • A higher return than ordinary debt
  • Higher cash flow than common equity dividends
  • A return typically well ahead of inflation
  • Less volatility than equity investing
  • More certainty of future capital value than equity
  • Exposure to large, household name, investment grade companies
  • Investment in companies with long track records of meeting all obligation

Tideway Live: Investing in Hybrid Capital

Peter Doherty is interviewed by Nadine Dereza on what hybrid capital is, and his approach to investing.

Download our Guide

Download Tideway's Guide to Hybrid Capital (PDF) by clicking the link below.

Download the Guide

Tideway Investment Group comprises the following entities: Tideway Investment Partners LLP; Tideway Wealth Management Limited and Tideway Asset Management Limited. Tideway Asset Management Limited and Tideway Wealth Management Limited are appointed representatives of Tideway Investment Partners LLP, which is authorised and regulated by the Financial Conduct Authority. FCA number: 496214.

Tideway Investment Partners LLP
107 Leadenhall Street
London EC3A 4AF

+44 (0)20 3143 6100

© Tideway Investment Group 2019