Alternatives to the usual source of long-term bank funds that have the characteristics of both debt and equity are called:

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Subordinated notes are a type of hybrid security that has characteristics of both debt and equity. They are issued as long-term debt, but their repayment is subordinated to other debt in case of bankruptcy or liquidation, which gives them equity-like features. This makes them an alternative source of long-term bank funds, as they offer a higher level of security to investors than pure equity, while still providing some of the upside potential of equity. Secured debentures, transferable certificates of deposit, and promissory notes are not considered hybrid securities.

Alternatives to the Usual Source of Long-Term Bank Funds That