Instead they return an amount based upon the performance of an underlying equity instrument, be it an index, a hedge fund or even a single stock.

FORBES: Another Option

To turn to a specific, currently relevant example, if fixed-interest bonds are bad, but equity investments are acceptable, then what if an investor buys a non-voting equity instrument whose return is based on profit shared between him and the venture--with any profit above 6% given to the venture as a "reward"?

FORBES: Magazine Article

Ten years ago, an investor eager to play the two side by side had essentially one instrument: the convertible bond (debt switchable into equity).

ECONOMIST: Buttonwood

Corporate bonds are a fairly unique instrument in that they share characteristics from both the debt and equity side of the market.

FORBES: It Started With Tulips, Now Bubble-Watchers Are Looking To The Bond Market

When Wall Street went into meltdown last fall, the bottom fell out of the exotic-instrument market, and many of Harvard's private-equity investments proved to be unsalable--that is, worthless, at least temporarily.

FORBES: Magazine Article

There has been a vast amount of talk - for as long as I can remember - about creating a financial instrument (so-called mutual paper) that would serve as a proxy for equity capital for building societies and that could be sold to investment institutions or even retail investors.

BBC: Will Northern Rock be re-mutualised?