Hybrids: Diversifying by unifying

Since the start of the global financial crisis in 2008, an uncertain economic environment has emerged, with volatility and uncertainty encouraging market participants to increasingly diversify their exposures into multiple asset classes in order to capture yield-generating opportunities and/or put in place more efficient hedging strategies.

As a result, hybrid structures (derivatives linked to more than one asset class) are becoming increasingly effective at combating volatility, be it for investors or hedgers.