Usually, the fewer investors in the market, the greater the probability of winning the lottery. The greater the total amount of new bonds issued, the higher the probability of investors winning the bid. On the contrary, the more investors the market buys, the smaller the probability of winning the lottery. The smaller the total amount of new bonds issued, the lower the probability of investors winning the bid.
In the market, making new debts is not a certain thing. New bonds are also likely to lose money. After all, convertible bonds are likely to break, and the performance of positive shares will directly affect the market trend of convertible bonds. Generally speaking, when there is a large premium between the stock price and the conversion price, convertible bonds tend to rise, and vice versa.
Therefore, investors must be cautious when making new debts. Moreover, with the increase of investors, the supply of convertible bonds is likely to increase, so that the new income will shrink.