Trust Preferred Securities (TruPS) are hybrid securities that combine the features of debt and equity. They are issued by banks and other financial institutions and are typically structured as subordinated debt with a dividend that is paid out of the issuer’s profits. The dividend is usually cumulative, meaning that if the issuer misses a payment, the missed amount must be paid before any future payments can be made. TruPS are generally considered to be a lower-risk investment than common stock, but they also offer a higher return than traditional debt instruments.