What is convertible bond?

The full name of convertible bonds is convertible bonds, which are bonds that bondholders convert into common shares of the company at the agreed price at the time of issuance and can collect principal and interest at maturity.

Convertible bonds combine the advantages of bonds and stocks, which can not only be converted into stocks to obtain high returns, but also be used as bonds to protect capital and interest.

Does this sound a little circuitous?

For example. For example, Dunton Company is a listed company, and I issued Dunton convertible bonds, corresponding to Dunton shares.

At the time of issuance, I stipulated that the face value of Dundun Convertible Bonds was RMB 65,438+00, and the convertible bond price was 2 yuan.

Then even if the price of Downton shares rises to 5 yuan, you can still convert the convertible bonds in your hand into 5 shares according to 2 yuan 1 share and make a profit by trading in the market.

If the stock price falls, or you don't want to convert it into shares, you can either sell the convertible bonds directly to make money, or stay until the maturity to get the principal interest.

Therefore, convertible bonds are a relatively flexible investment target, which has both the security of bonds and the high yield of stocks.

02

How to buy convertible bonds?

So convertible bonds are so good, how to buy them?

First, you need to open a brokerage account. Now many brokers have the entrance to buy convertible bonds, but some are detailed and clear, and some are poor.

If you are lazy, it is recommended to choose a brokerage APP with SMS prompt or one-click new function.

Generally, it can be purchased from the entrance of new debt purchase. Let's look at the recent earnings of convertible bonds, and we can see that many of them are above 10%, and few of them are broken when they are listed.

However, it should be noted that the transaction unit of convertible bonds is 65,438+00, that is, 65,438+0. If you win 1, you can deposit 1, 000 yuan into your account.

In addition, there is an upper limit for subscription, with a maximum subscription of 654.38+0 million pieces. Because the probability of winning the bid is relatively low, if you really want to purchase convertible bonds, you can increase the probability of winning the bid through the top-level subscription.

On the first trading day after subscription, assign the logo code, and on the second trading day, you can see the winning result in your account.

Of course, after winning the lottery, it doesn't mean that you can get benefits immediately. Generally, it will be listed 2-3 weeks after the subscription is completed, and sometimes it will be longer, so be prepared.

03

When will the convertible bonds be sold?

So when is the right time to sell convertible bonds after winning the lottery? The best strategy is:

Sell on the day of listing, unless the opening limit, even if the daily limit, it is also sold after the opening.

Why do you say that? Because generally speaking, the income on the first day of listing is the highest, and it is more cost-effective to sell at this time.

Some friends may ask: what if it breaks on the first day of listing? Isn't it a loss?

In this case, there is no need to worry. Just keep it and sell it when the market is good.

Even if the market has not been very good, you can hold it and get interest after it expires. Although the interest will be lower, it is better than losing money in Qian Qiang.

Such a good thing can not only guarantee the bottom, but also obtain high returns, and many people will buy it. How can we improve the winning rate?

Here is a way to teach you how to make a new one with multiple accounts at home and improve the probability of winning the lottery.

04

When is the convertible bond market good?

When is the convertible bond market generally better?

This is when bears and cows exchange.

According to the report of TF Securities Research Institute, when the market turns from a bear market to a bull market, the equity market is at a low valuation, which is the opportunity to allocate convertible bonds.

If the bull market really comes, convertible bonds will also rise with the stocks, and the yield will also increase. If the bear market continues, convertible bonds can also be turned into a conservative strategy, with the help of bond properties to resist falling.

As far as the recent market is concerned, in the adjustment period, it is possible to change from cattle to bears, and convertible bonds are a better choice. .

Finally, I repeat that convertible bonds are not stocks, so don't chase up and down. The purpose of choosing convertible bonds is to obtain higher returns as low as possible.