How to deal with bond investment risks Faced with various risks that may be encountered in the bond investment process, investors should take them seriously and use various methods and means to understand and identify risks. , find the causes of risks, and then formulate risk management principles and strategies, use various techniques and means to avoid risks, transfer risks, reduce risk losses, and strive to obtain the maximum expected annualized return. 1. Carefully conduct risk assessment before investment. Before investing, you should fully understand and master various information through various channels, and analyze the various risks that may be brought about by the investment object from both macro and micro aspects. From a macro perspective, we must accurately analyze the changes in various political, economic, and social factors; understand the cyclical characteristics of economic operations and the changing trends of various macroeconomic policies, especially fiscal policies and monetary policies; pay attention to the expected annualized interest rates of banks. Changes as well as changes in various factors that affect the expected annualized interest rate, such as inflation rate, unemployment rate and other indicators. From a micro perspective, it is necessary to not only grasp the country's industrial policy as a whole, but also conduct a detailed analysis of the various factors that affect the price changes of national bonds or corporate bonds. For investors in corporate bonds, it is very necessary to understand the company's credit rating, operation and management level, product market share and development prospects, and various financial indicators of the company. In addition, we must further understand and grasp the following conditions of the bond market: the trading rules of the bond market, market size, investor composition, basic economic and psychological conditions, characteristics of market operations, etc. 2. Develop various investment strategies that can avoid risks. 1. Laddering of bond investment periods. The so-called maturity laddering means that investors diversify their funds into bonds of different maturities. Investors often keep short-term, medium-term, and long-term bonds in their hands. No matter when, there is always a part of mature bonds. When it reaches maturity, After the period, the funds are invested in the longest-term securities. Assume that an investor has 100,000 yuan in funds, and he uses 20,000 yuan to purchase various bonds with 1-year, 2-year, 3-year, 4-year and 5-year terms. In this way, he has 20,000 yuan every year. When the yuan bond matures, the funds are recovered and then the 5-year bond is purchased, and the cycle repeats. This method is simple, easy to operate, and enables investors to use and allocate funds in a planned way. 2. Diversification of bond investment types. The so-called diversification of types means that investors invest their funds in a variety of bonds, such as treasury bonds, corporate bonds, financial bonds, etc. The expected annualized returns and risks of various bonds vary. Concentrating funds on investing in a certain type of bond may have various adverse consequences, such as using all funds to purchase treasury bonds. Although this investment behavior is very safe and has low risk, due to the relatively low expected annualized interest rate of treasury bonds, Doing so causes investors to lose the high expected annualized returns that can be obtained by investing in corporate bonds; if all funds are invested in low-grade corporate bonds with high expected annualized returns, the expected annualized returns may be high, but they lack safety. , it is likely to encounter operating risks and default risks, and ultimately the promise of high expected annualized returns may also turn out to be in vain. The diversification of investment types can achieve the purpose of diversifying risks and stabilizing expected annualized returns. 3. The investment period of bonds is shortened. The so-called short-termization means that investors invest all their funds in short-term securities. This investment method is more suitable for corporate investors in my country. Because most units in our country have very limited long-term funds at their disposal, only some temporarily idle funds that can be used for securities investment. Shortening the maturity period can not only make bonds highly liquid, but also achieve expected annualized returns higher than those of bank deposits. Due to the short term of the bonds invested, once the company needs funds, it can be quickly transferred to meet the needs of production and operation. Adopting this investment method can maintain the liquidity and flexibility of funds. 3. Use various effective investment methods and techniques 1. Use treasury bond futures trading for hedging. Treasury bond futures hedging transactions are very effective in avoiding the expected annualized interest rate risk in treasury bond investments. Treasury bond futures trading means that when investors buy or sell Treasury bond spot in the financial market, they simultaneously make a forward transaction for the same type of bond, and then flexibly use short and long trading skills to trade between the two at the appropriate time. Each transaction is hedging, and the profits and losses of futures transactions are used to offset or partially offset the profits and losses of spot transactions within the relevant period, thereby achieving the purpose of avoiding or reducing the expected annualized interest rate risk of treasury bond investment. 2 Accurately calculate the expected annualized return on investment and use this as the basis for investment decisions. The calculation of the expected annualized return on an investment is sometimes complex and must be done accurately.