The high price shows that the convertible bonds are weak and the high premium rate shows that the price of convertible bonds is much higher than the value of convertible bonds, and such convertible bonds will suffer serious losses and high risks when they fall.
2. When the price of convertible bonds is low and the conversion premium rate is high.
The face value of this convertible bond will be close to 100 yuan, and it is highly indebted.
If you want to sell this convertible bond at a high price, it will be difficult. You need to wait until the stock moves better before you can hope to sell it at a high price.
3. When the price of convertible bonds is low and the premium rate is low.
In this case, convertible bonds are double-low convertible bonds. This convertible bond can be attacked and retreated. It is a very good target to choose the convertible bonds of industry leaders or large-cap companies from these convertible bonds that meet the standards.
4. When the price of convertible bonds is high and the premium rate of convertible bonds is low.
Convertible bonds that meet this standard are generally easy to trigger forced redemption, so our strategy is to buy and hold such convertible bonds on dips.
(1) offensive and defensive thinking of investment
Macroscopically, attack is investment and defense is cash flow; Microscopically, offense is revenue and defense is risk.
Only pay attention to attack, once the market falls, it will be an abyss, only pay attention to defense, once the market rises, you will not enjoy success. In the past, I was only keen on high-risk investment tools such as blockchain assets and futures, and only attacked and failed to defend, which led to the loss of 7 digits in market volatility and bloody lessons, but at the same time I also gained investment: offensive and defensive thinking.
When making an investment, you should pay attention to both offense and defense. Offense brings benefits, and defense ensures stability.
The investment strategy of convertible bonds should also pay attention to attack and defense.
(2) the investment strategy of convertible bonds
① Defensive convertible bonds: The defensive strategy is that there is no room for decline, or there is limited room for decline, and there is a greater chance of obtaining stable income, especially the convertible bonds with a rating of AA or above below 100 yuan. Its characteristic is that it greatly outperforms index funds in the bear market, and the worst performance is within 10%.