The Magic Book of Convertible Bonds Investment

1. In the bull market in 26-27, nothing could beat the index and index funds;

second, in the bear market in 28, convertible bonds won the index fund;

Third, after 28, it was a mixture of rebound market, shock market and make-up market for several years. However, regardless of the wind and waves, convertible bonds remained unmoved, and the yield significantly exceeded that of index funds;

4. Four elements of convertible bonds:

1. Convertible stock price;

2. resale terms;

3. Compulsory redemption clause (or conditional redemption clause);

4. lower the conversion price clause (or the conversion price downward revision clause);

5. The summary of the prospectus is shorter and easier to understand than the prospectus;

VI. Convertible bonds may be the only place in the stock market where the interests of investors and listed companies are highly consistent;

VII. The performance of convertible bonds looks amazing, but the essence is only because of the nature of guaranteeing the bottom, and 58 winning transactions have been completed under the catalyst of time;

VIII. Buying convertible bonds below 11 yuan yields over 3%. Convertible bonds are great and simple.

IX. Arbitrage opportunity:

1. The stock is about to meet (lower than 8% of the conversion price for 2 consecutive days), and the conversion price conditions are revised downwards, and the stock (or convertible bonds) are bought in advance to wait for the rise;

2. The shares are about to meet the protection conditions for resale (lower than 7% of the conversion price for 2 consecutive days), and the shares (or convertible bonds) are bought in advance to be pulled up;

3. The stock is about to meet the mandatory redemption conditions (15 trading days out of 3 consecutive trading days are higher than 13% of the conversion price), and the stock (or convertible bonds) is bought in advance to be pulled up;

4. The price of convertible bonds has dropped to below 9% of the face value of 1 yuan, so you can buy them with confidence;

5. Arbitrage that may occur during redemption at maturity;

6. grab convertible bonds below the resale price and then sell them back to listed companies.