The vast majority of investors have participated in the subscription of convertible bonds. To complete the subscription of convertible bonds, only one securities account is required. In most of the past, positive returns can basically be achieved.

For a long time, convertible bonds were considered a risk-free arbitrage investment channel.

Considering the high cost of issuing new shares, convertible bond subscription is indeed very suitable for most investors.

In fact, as an investment tool well known to investors, convertible bonds are not limited to profit-taking on the first day of listing, but can also have multiple ways to make profits.

Of course, compared with the risk-free arbitrage strategy of buying and selling alone, other convertible bond investment methods also have certain investment risks.

For example, when a listed company's convertible bonds are about to be issued and subscribed, investors can purchase the underlying stocks in advance and obtain the qualification to sell the convertible bonds.

Compared with the pure subscription model, the success rate of this strategy is basically guaranteed and it has good layout advantages.

However, given these shortcomings, it is necessary to pay attention to the price fluctuations of the underlying stocks.

If the share price of the underlying stock drops sharply after the issuance of convertible bonds, the investment income from the convertible bonds may not be able to make up for the loss of the underlying stock.

Another example is that when investors are optimistic about listed companies, they can pay attention to the performance of the convertible bonds corresponding to the listed companies from a safety perspective.

Indeed, if the performance of the underlying stock continues to be active, the price performance of convertible bonds will not be worse.

They even used the rules of convertible bonds to speculate on the price of convertible bonds.

It is worth mentioning that if the price of the convertible bond is not too high and is close to the value of the convertible bond, investors will be safe even if the price of the convertible bond falls in the short term.

In fact, convertible bonds have a trading cycle and an interest payment period each year.

Investors who buy these bonds near par or even conversion value will eventually have the opportunity to retain their principal over the years, as long as they hold on to them.

In addition, convertible bonds themselves also have T+0 trading advantages, which are different from the trading rules of the stock market.

At the same time, there are no rise or fall limits on the stock market.

Market funds, if the price of the underlying stock is still active, then it is a relatively prudent investment strategy to participate in convertible bonds and invest in the corresponding underlying stocks.

However, convertible bonds are not without risks, and the biggest trading risk comes from their highly speculative nature.

When the price of some convertible bonds reaches the redemption clause, it means that the listed company may adopt an early redemption strategy.

Investors who fail to sell or convert stocks in time will suffer huge investment losses.

If used correctly, this can be achieved with a bull-bear investment objective.

However, if you are not familiar with the rules but blindly chase the rise, you have overdrawn the value of the convertible bonds so far, and naturally there are huge investment risks. Behind the crazy performance of convertible bonds, investors really need to be very vigilant about convertible bonds.

If the redemption terms of convertible bond prices are affected, profits should be taken as soon as possible to minimize unnecessary losses.