Convertible bond fund is a kind of fund that invests in convertible bonds and belongs to a kind of bond fund. With the listing of many new repayable bonds in the convertible bond market, the performance of convertible bond funds is also very bright, attracting the attention of many investors. Many investors want to know whether the convertible bond foundation has lost money. Get to know each other together.

Is the convertible bond foundation losing money?

The answer is yes, convertible bond funds may lose money. Convertible bonds may suffer losses due to price fluctuations. Convertible bond funds have the characteristics of both creditor's rights and equity, and the price of convertible bonds will be affected by the stock price. When the stock price rises, the price of convertible bonds will also rise. If the stock price continues to fall, the price of convertible bonds will also fall. At this time, investors will hold convertible bonds to maturity, but their coupon rate is very low. If the solvency of listed companies is insufficient, they may convert bonds and face the risk of default.

To sum up, convertible bond funds are not guaranteed, and their correlation with the stock market is even greater than that of ordinary bond funds, and their returns and risks are even higher than that of hybrid bond funds.