Offbeat Offerings: Fixed-Rate Capital Securities
by Cara Scatizzi
Fixed-rate capital securities are debt/equity hybrid investments, first developed in the early 1990s, that attempt to combine certain advantageous features of equity and debt securities to both issuers seeking to raise capital and income-oriented investors.
In this article
- How They Work
- Types and Identifying Acronyms
- How to Trade
- Investor Suitability
- Tax Consequences
- The Pros
- The Cons
- Additional Information
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Preferred partnership securities, trust preferred securities, capital securities, MIPS, MIDS and QUIPS are just a few examples of the various forms of fixed-rate capital securities.
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