Simply put, it is a bond that can be converted into stocks.
On the surface, it is a low-interest bond, such as an annual interest rate of 2%, which is lower than ordinary bonds. In order to enhance its appeal and endow it with conversion function, it can be converted into stocks, so it has the characteristics of "debt" and "stock".
The advantage is that it is guaranteed and will not lose money when it expires. Although the interest rate is a little low, there is a chance to convert it into stocks to obtain uncapped income. For example,
So-and-so convertible bonds, with a face value of 65,438+000 yuan, 2% in coupon rate, due in 5 years, and the conversion price is 8 yuan.
When the price 100 yuan, I bought the first hand (10 block), and the cost100×10 =1000 yuan.
There are 100 (par value) × 10÷8= 125 shares converted into shares.
If the stock (stock) price corresponding to convertible bonds is higher than that of 8 yuan, such as 10.4 yuan, the converted selling profit is 125×( 10.4-8)=300 yuan, and the yield is 300÷ 1000 (cost) =30%.
The higher the stock price, the greater the profit space; The lower the purchase price, the greater the profit margin.
However, if the stock price is lower than that of 8 yuan, we don't need to convert, otherwise we will buy the stock at a higher cost. If you really want to hold the stock of this company, you can buy it directly in the market at a price lower than that of 8 yuan.
At this time, we will choose to continue to hold bonds, and the big deal is to charge the principal and interest of1000+1000× 2 %× 5 =1100 yuan until the maturity.
Or sell it at a price higher than the cost price in the secondary market in advance.
As long as the share price is higher than the conversion price, the probability of making money by selling shares is great.
In view of the purpose of issuing bonds by listed companies, to a large extent, convertible bonds will trigger compulsory redemption. At this time, the income from selling stocks can reach more than 30%, and the profit space is not less than the fixed investment of the fund, and the time required is relatively short (such as redeeming four new bonds in less than one year this year), which is very attractive to low-risk investors.
Of course, this does not mean that buying convertible bonds can guarantee you a stable 30% income, but if the market price is lower than the agreed conversion price, then you can choose not to convert shares and have guaranteed interest income. If you insist on telling me that this interest will be lost to inflation, there is nothing to say.
Therefore, convertible bonds have both the nature of bonds and stocks, and from the perspective of income, there is a guarantee under the cap.
It is equivalent to buying a bond and a call option, and deciding whether to exercise according to the market price and the conversion price.
But if you buy convertible bonds, you won't lose money in theory. If the purchase price is too high, you will probably lose money.
Therefore, for novice friends, many suggestions are within 100 yuan (inclusive), and it is very simple to make new debts. The price 100 yuan, don't worry about buying expensive.
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Note: there is a difference between making new bonds and buying convertible bonds:
Buying convertible bonds means trading with the same investor in the secondary market, just like buying and selling stocks, entering the code, entrusting the price and quantity and waiting for the transaction.
Accurately speaking, buying new bonds means trading with the issuer in the primary market, without entering the code and the entrusted price (unified purchase according to the face value 100 yuan).
Many readers and friends still don't know the process of making new debts. Please give it to Popular Science again.
Basically you have to have a stock account first.
After opening a stock account, things will be easy:
1. Open the stock software on the day of purchase and find the "innovation" area.
2. Buy convertible bonds.
If you judge that the new debt is good and plan to buy it, you can choose to buy it at the top, which is "all" in the picture. If you are not sure about convertible bonds, you can have reservations and don't argue.
You don't have to pay when you buy it, because you don't necessarily win, and you don't necessarily have that many.
If you win the lottery, you only need to pay the winning part.