How to understand the reverse repurchase of national debt?
1, the meaning of national debt repurchase transaction is that the buyer and the seller agree to conduct reverse transactions at a certain price at a certain time in the future.
2. The reverse repurchase of national debt is essentially a short-term loan, that is, the buyer lends money to others and obtains fixed interest; The seller uses the national debt as collateral to repay the principal and interest at maturity.
3. Reverse repurchase has strong security, and the security level is equivalent to national debt.
How to get high expected returns from reverse repurchase of national debt?
1. Choose longer time and more funds if your own conditions permit.
Generally speaking, the longer the time, the more funds you have, and the more expected returns you will get at maturity. According to your own funds, choose the term and the corresponding investment varieties.
2. Pay attention to the change of interest rate, and it is best to buy when the interest rate is high.
Understand the relationship between the expected rate of return on reverse repurchase of government bonds and interest rates. Under normal circumstances, if the interest rate rises, the expected rate of return will also rise, and the expected rate of return will naturally increase.
3. Pay attention to the changes in the stock market.
Changes in the stock market will have an impact on the expected rate of return of reverse repurchase of government bonds. The higher the stock market activity, the more new shares are issued, and the higher the expected rate of return. At the end of the year, funds are tight and the expected rate of return is high.
4. Reducing the intermediate time of reverse repurchase can improve the expected return and reduce the corresponding cost.