A structured convertible security that represents a hybrid security (hybrid instrument) that allows the holder or owner of a collection of equity shares (common shares) to continue to hold the shares, have exposure to the risk and rewards (dividends and other residual rights) involved, and exercise voting rights. By nature, it is a debt instrument that also has specific features of common equity.

However, if the issuer decides not to retire the securities at the end of the fixed period (usually three or five years), ownership of the underlying shares will pass to the holders of these securities. Hence, the structure involves a debt component that continues up to an expiration date, and a potential convertibility into common shares, thereafter.

Structured yield product exchangeable for common stock (STRYPES) was developed by Merrill Lynch.