Hybrid securities are investments structured to have characteristics
of both equity (common and preferred stock) and debt. The
classification of these securities is of great importance to
insurers because, when a hybrid security is determined by the
SVO to be equity rather than debt, the insurer will face substantially
higher risk-based capital charges.
For a list of current Classification Determination Reports and
the SVO's Statement on Classification Analysis go
to the Securities Valuation
Office Web page. |