Editorial: Equity: the sacred security

Author: | Published: 20 May 2016

The cross-pollination of asset classes is, by now, old hat. Bonds adopt equity characteristics, there are triple recourse residential-mortgage backed securities, and with structured products it seems the only limit is your imagination. But while such tinkering – albeit more prudentially and closely scrutinised since the crisis – is fair game for most securities, there is one glaring exception.

Equity's one-vote-one-share principle seems almost untouchable. Unconventional share classes do of course exist, and usually in tech where the founders of what were once start-ups want to retain a certain amount of control over their now public company. Chinese e-commerce...