An instrument that possesses and exhibits the features of quasi-equity (QE)- that is, the features (certain features) of both equity and debt. and at times, also specific characteristics such as its confinement to a specific set of assets or business, but not the entire entity (issuer) and its possession of less rights than equity, etc.

Features related to equity may include residual interest in the underlying assets or business, while those related to debt may be a maturity date or a put option of redemption, etc.

Examples of quasi-equity instruments include perpetual bonds, subordinated loans, convertible debt, participating loans, and other instruments with similar features such as SAFE notes. A perpetual bond is a quasi-equity instrument that has no fixed maturity and can continue perpetually with no principal repayment but only a coupon interest payment. Given the quasi-equity nature of such a bond, the payment of coupon is made at the discretion of the issuer (coupon payments may not be made in a year in which the issuer has accumulated losses or does not have sufficient reserves for such payments.)