Can someone explain in clear terms what hybrid preferred securities are? I understand bonds and preferred stocks - but what exactly are hybrids? If they are backed by bonds who bought and holds the bonds? An example is:
Issuer Name: Citigroup Capital XVII Enhanced Trust Preferred Security (ETRUPS) Issuer Description: This cumulative deferrable hybrid security is an indirect obligation of Citigroup Inc. Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumers and corporate customers around the world. Type Of Bond/Security: Hybrid Preferred Security