In this interview with Pinnacle's Gerald Willeston I discuss the role bank-issued hybrids can play in a portfolio relative to (1) global high yield bonds and (2) defensive equities. A few charts to put this in context are also enclosed below. Click on the video in the player below to access the interview.

Ming M

Please write about hybrids vs bond funds. Can they replace defensive bond allocations in portfolios? Given bond funds are not expected to return more than a HISA and have failed to provide a negative correlation with stocks, is there a point of having them over cash (with a government guarantee)? More risk less return?... Seems crazy.