Since the relationship between bond funds and bonds is remarkable, we should fundamentally understand bonds.
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Types of bonds. Many people will think that there are thousands of stocks, and the choice will be bigger than bonds. Actually, it is not. Compared with the dazzling bonds, stocks are still relatively monotonous. There are many kinds of bonds with complex patterns. Even the same company can issue various bonds, giving investors many choices.
As far as trading places are concerned, they are generally divided into three categories: one is the inter-bank bond market, which is mainly aimed at institutional customers; Second, the exchange bond market is dominated by Shanghai and Shenzhen stock exchanges, and the main trading varieties are corporate bonds; The third is the counter market of commercial banks, mainly targeting institutions and retail investors.
From the perspective of issuers, the types of bonds include government bonds (bonds issued by central or local governments), central bank bills (short-term financing bills and medium-term bills issued by the People's Bank of China for banks and enterprises) and government-supported institutional bonds (including policy financial bonds issued by policy banks such as China Development Bank, including project bonds). Such as Three Gorges Project bonds), financial bonds (securities issued by banks and other financial institutions), corporate credit bonds (unsecured bonds issued by enterprises that rely entirely on corporate credit), asset-backed securities (bonds issued by enterprises with asset collateral) and panda bonds (bonds denominated in RMB issued by foreign institutions in China, corresponding to Japanese "samurai bonds" and American "Yankee bonds") belong to foreign countries.
As far as bond maturity is concerned, there are so-called short-term bonds, medium-term bonds and long-term bonds. In China market, short-term bonds with a repayment period of less than 1 year, medium-term bonds with a repayment period of more than 1 year and less than 5 years, and long-term bonds with a repayment period of more than 5 years.
Generally speaking, enterprises issue short-term creditors mainly to raise temporary liquidity, and the short-term interest rate is relatively low. The term of short-term debt is divided into three months, six months and nine months. The purpose of issuing medium-and long-term bonds is to make long-term investment projects, so that the term of funds can match the return period of investment projects as much as possible.
The bonds issued by our government are mainly in the medium term, concentrated in 3-5 years, and the government began to issue long-term bonds after 1996.
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Factors that determine bonds.
Bond investors generally have two sources of income, one is interest income, and the other is capital gains.
So how do you judge whether bonds are worth buying?
If we see a zero-coupon national debt with a maturity of 1 year, the face value of each period is 100 yuan, which means that this national debt pays no interest, and only pays 100 yuan in cash (also called discounted bonds) when it matures in one year. So how much will this 100 yuan bond be worth after 1 year?
It can be measured by the yield curve of national debt price (I understand it is the average interest rate). The interest rate of one-year bonds in the market is 3.66%. 100/(1+0.0366) = 96.47 yuan. In this way, the value of this 1 year bond is 96.47 yuan! As long as the market price is lower than or equal to this value, it is worth buying.
Suppose the national debt we are looking at is three years with an annual interest rate of 8%. How should we price it? This bond is paid to investor 8 yuan at the end of the first and second years, and 65,438+008 yuan at the end of the third year, with a three-year interest rate of 3.77%. Use this discount rate to discount the income in the next three years:
8/(1+0.0377)+8/(1+0.0377) 2+108/(1+0.0377) 3-=1/kloc-. In this way, if the market price is only 100 yuan, people will rush to buy it and speculate on the price quickly until the price rises to11.79 yuan!
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Discrimination of several concepts of national debt yield
First of all, the "nominal rate of return", which is what we call "interest rate", was fixed when it was first issued. For example, 10-year national debt, with a face value of 100 yuan, pays 5% interest every year. Then the holder receives the income of 5 yuan money from the Ministry of Finance every year, that is, the nominal rate of return is 5%.
The second is "yield to maturity", that is, the annual rate of return that can be achieved by holding bonds to maturity. For example, 96 yuan bought a 10-year national debt with a face value of 100 yuan, 5% in coupon rate, and it will expire in two years; Then, yield to maturity =5+( 100-96)/2/96=7.29%.
Usually, the "national debt yield" or "bond yield" we see in newspapers or news refers to "yield to maturity".
The third is "holding rate of return", which refers to the rate of return that can be obtained after buying bonds without waiting for maturity. This income is very uncertain.
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Bonds seem simple, and my knowledge is only low-risk products, but it takes time to understand the related concepts of bonds, especially the terms such as bond yield curve and discount rate.
The topic is "Is buying a bond fund equal to buying bonds?" ? ",said so much in front of the basic knowledge of bonds, in fact, is to review the chapter on bonds in Chen Zhiwu Finance. To be honest, I also find those concepts difficult to understand and really don't want to pay attention. However, I think that since I have learned it, I should always relive my memories, otherwise I will have no impression after listening to this course.
Back to the topic of bond funds, I just said that I don't understand the related concepts of bonds. I think there are doubts for the time being, as long as I understand that bond funds can still be operated and implemented.
Bonds are low-risk products, so are bond funds, especially pure debt funds. I saw a quantitative test model before. Bond funds have been held for more than one year, and the probability of loss is very small.
It is very suitable as a part of family asset allocation, and the way of investing in bond funds is much more convenient than bonds, and relevant fund purchase platforms can be purchased.
Bond fund is the best combination selected by fund companies from various bonds, and there are many kinds, from which investors can choose suitable bonds. I think bond funds are more suitable for the convenience of most investors.
Summary of key points related to bonds
1. For the pricing of assets such as bonds, the yield curve of government bonds is the anchor of the sea. This curve expresses the relationship between the future risk-free rate of return and the term, and also represents the opportunity cost of investors. These yields are usually considered as the windless discount rate in the future.
2. For government bonds, corporate bonds and local bonds. The valuation method is similar. First calculate the future annual interest of bonds, then paste them in stages, and finally sum them up. But the discount rate of national debt is determined according to the yield curve of national debt. For corporate bonds, it must be the discount rate of government bonds with the same maturity plus the corresponding risk premium.
3. There are two main yield risks of bond investment: one is whether the future interest and principal payments can be cashed, which is usually called credit risk; The second is interest rate risk, that is, whether the discount rate will rise. For example, the improvement of economic conditions will lead to an increase in interest rates, and investors' tendency to avoid risks will strengthen, leading to an increase in risk premium.