Compared with the stock market, the convertible bond market has always been a niche investment market, and the current market stock is about 654.38 billion yuan. The terms and design of convertible bonds are complicated, which is difficult for individual investors to grasp. Among institutional investors, the public debt fund is one of the main participants. In this case, it is the best choice for the borrowing base to participate in convertible bonds.

Convertible bonds are both offensive and defensive. First of all, the design of convertible bonds has the dual characteristics of debt and stock, with fixed maturity and fixed interest rate, which can provide investors with stable interest income and repayment guarantee and provide debt bottom protection for the price of convertible bonds; At the same time, it also has the right to convert it into the shares of the target company at maturity or within the agreed time, and enjoy dividends or capital appreciation. Secondly, convertible bonds can be used for exchange repurchase. When the market is optimistic, it is more offensive than stock funds to amplify leverage and improve returns. Therefore, the fund with convertible bonds as the main investment object has the dual advantages of low risk of bond funds and high return of partial stock funds, and is an investment product with both stocks and bonds and both offensive and defensive.