When hybrids go bad

Investors bought $285 million of PaperlinX hybrids in 2007, attracted by regular distributions and the prospect of a step-up. Within two years it all went horribly wrong.

PORTFOLIO POINT: PaperlinX hybrid owners are squaring off against shareholders in a striking example of how badly an investment in a hybrid security can go wrong.

Not all is rosy in the land of fixed interest, and the furore being made by PaperlinX hybrid owners is bringing that truth home to investors newly enamoured of the sector.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles