Debt Equity Bonds are financial instruments that combine features of both debt and equity. They are issued by companies to raise capital, offering investors a fixed interest rate like traditional bonds, while also providing the potential for equity-like returns if the company performs well. These bonds typically convert into shares of the issuing company under certain conditions, allowing investors to benefit from the company's growth. This hybrid nature makes Debt Equity Bonds appealing to those seeking a balance between risk and return, as they offer fixed income with the possibility of capital appreciation.