Decoding Australian Hybrids: Episode 4 – Portfolio Alternatives

We are pleased to share the final episode in our four-part video series on Hybrid Securities, where members of the Bentham Asset Management investment team provide insights into the evolving hybrid market and its broader implications.

In this episode, Richard Quin, Bentham’s CIO, speaks with Calvin Niu, Senior Investment Team member, to explore the risk-return profile of hybrid securities and how they compare to other fixed interest and credit instruments.

This discussion covers:

• How hybrid securities behave in different market conditions
• The asymmetric risk-return profile of individual hybrid securities
• The impact of market volatility on hybrids compared to bank equities
• The role of diversification in managing risk within a credit portfolio
• Approaches to portfolio construction that aim to reduce drawdowns and volatility