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.

Mark Elsworth

Thanks Chris. Wonderful information as always. With the World in it's current turmoil, would you like to give an indication as to the % of a portfolio that you would be happy to allocate in the hybrid space? Assuming a relatively conservative risk profile? Thanks