A: Thanks for the question.

They are totally different propositions. While both have equity characteristics (you could lose most or all of your capital), only Macquarie ordinary shares have any upside potential. There is absolutely no potential for long term capital growth on Macquarie Capital Notes.

I think of Macquarie Capital Notes as being part of my “risky fixed interest” portfolio.

There is an old saying in investments – if you don’t understand it, don’t invest in it.  ASIC’s MoneySmart website has some quite good material on hybrid securities – you can access it on this link https://www.moneysmart.gov.au/investing/complex-investments/hybrid-securities-and-notes

Regards