Usually, according to the existing grading fund product model, there is a disassembly mechanism for the leverage end (B) share, that is, once the disassembly point is triggered, the net value of Class B share will be split (reduced) and its net value will be unified. Such a mechanism design mainly considers the following two points:
1. Protect Class A shares with the characteristics of stable and fixed expected annualized expected income, and prevent Class A shares from being allocated the principal and expected annualized expected income before being allocated Class B shares under extreme market conditions. Then, if the net value of B returns to zero, Class A shares will suffer extreme losses, and the principal of Class A shares and the guarantee of expected annualized expected income will also be lost.
2. Restrain the leverage ratio of the lever B, because once the net share value of the lever B is very low (such as 0.25), the leverage ratio of the lever B will be very large. The smaller the net share value of the lever B is, the greater the leverage ratio will be, even dozens of times, which may cause great fluctuations and even make a choice between the daily limit and the daily limit, which is not conducive to market investment and has great speculative risks.
Tips:
1. The above contents are for reference only and do not make any suggestions;
2. Before investing, it is recommended that you first understand the risks existing in the project and have a clear understanding of the investors, investment institutions, chain activity and other information of the project, instead of blindly investing or straying into the capital market. Investment is risky, so be cautious when entering the market.
Reply time: 2022-0 1- 17. Please refer to the latest business changes announced by Ping An Bank in official website.