What is a convertible bond fund?
The issuer of the bond is a listed company, which is a corporate bond; Convertibility of bonds means giving investors the option to convert bonds into shares of issuing companies at a certain price (conversion price) within a certain period (conversion period).
Investment skills of convertible bond funds;
Firstly, by counting the expected annualized expected returns of convertible bond funds, partial stock funds and all debt bases in different bond markets and stock markets, it is found that "two bulls with stocks and debts" and "two bears with stocks and debts" are the most suitable periods for investing in convertible bond funds. In these two environments, convertible bond funds are much better than other debt-based funds, even better than partial stock funds; However, in the environment of "share-debt double bear" and "share-bear-debt bull", convertible bond funds should be avoided and pure debt funds with lower risk should be selected, but convertible bond funds still have relative advantages over partial stock funds.
Second, pay attention to the leverage level and the position level of convertible bonds. In a favorable stock market environment, the higher the convertible bond position and the higher the leverage level, the stronger the ability to obtain the expected annualized expected return.
Third, the asset allocation of the selected fund matches its own risk preference. Except convertible bonds, the proportion of convertible bond funds investing in convertible bonds is not less than 80%, and some convertible bond funds do not participate in stock investment in the primary and secondary markets; Some only participate in the subscription or issuance of new shares in the primary market and do not participate in stock investment in the secondary market; Most convertible bond funds can also invest in equity assets such as stocks, generally not exceeding 20% of the fund assets.
Fourthly, combining the premium rate of stock conversion, the expected annualized rate of return at maturity and the premium rate of pure debt, we can judge the conversion of heavy positions into bonds. The lower the premium rate of convertible bonds, the more valuable they are, and the stronger the correlation between price fluctuations and stocks. Once the stock market reverses, the follow-up ability of convertible bonds will be extremely prominent. When the conversion value is negative, theoretically, investors can arbitrage by buying convertible bonds, converting shares and selling shares. The premium rate of pure debt is an index to judge debt-to-equity swap. The lower the premium rate of pure debt, the stronger the debt of convertible bonds, and the stronger the protection of debt bottom.
Fifth, choose a fund with fixed expected annualized income, strong team strength and strong investment management ability of fund managers. The ratio of convertible bonds to convertible bonds is not limited by 10%, which tests the fund manager's ability to select and allocate bonds. Fund managers with rich investment experience and strong investment ability have certain advantages in bond selection, allocation, leverage and market judgment.