In the past, there were only convertible bonds in the market, but now there are convertible bonds in Taiwan Province Province. Convertible bonds are not stocks! It is a bond, but people who buy convertible bonds have the right to convert it into stocks in the future.
Simply explained as convertible corporate bonds, listed companies issue corporate bonds, stating that creditors (that is, bond investors) can exchange the bonds for shares of a company after holding them for a period of time (this is called lock-up period). The creditor suddenly became the owner of the shareholder status. The conversion ratio is calculated by dividing the face value of the bond by a specific conversion price. For example, the face value of bonds is 65,438+000,000 yuan, which can be converted into 2000 shares, that is, 20 lots, divided by the conversion price in 50 yuan.
If a company's stock moves from the market price to 60 yuan, investors will be happy to convert it, because the converted stock is 50 yuan, so after the stock is converted, it can be sold in 60 yuan at the market price, and each share can earn 10 yuan, totaling 20,000 yuan. This situation is called converted value. This kind of convertible bond is called in-price convertible bond.
On the other hand, if the market price of a company's stock falls to 40 yuan, investors will be reluctant to convert it, because the conversion cost is 50 yuan. If you really want to hold shares in the company, just go to the market and buy them at the price of 40 yuan, not at the cost price of 50 yuan. This situation, we call it no conversion value. This kind of convertible bond is called sky-high convertible bond.
At first glance, the out-of-price convertible bonds seem unfavorable to investors, but don't forget that they are bonds and coupon rate can draw interest. Even in zero coupon bond, there are discount subsidies. Because convertible bonds have this feature, when it encounters bad news, its market price will stop falling to a certain extent, because its bond nature protects its value. This is called downlink protection.
Therefore, convertible bonds have dual personalities in the market. When the stock price rises very high, the share of convertible bonds is particularly heavy, and its Delta value is almost equal to 1, that is, when the stock price rises by one yuan, it can also rise by nearly one yuan. However, when the underlying stock price falls sharply, the bond personality of convertible bonds will be revealed, so that investors can still get debt interest and protect investors.
In the design of convertible bonds, brokers often give them the right to sell back and redeem, so as to increase investors' willingness to buy.
As for the convertible bonds in Taiwan Province Province, it means that the creditors (bond investors) can exchange the bonds with the central bank for a state-owned stock held by the state treasury after holding them for a period of time (this is called lock-up period). Similarly, creditors have become state-owned shareholders.
Convertible bonds are derivative financial products that span the stock and bond markets. Because there are also convertible options, the bond market in Taiwan Province Province has successfully launched a segmented market with separate creditor's rights. In other words, investors who hold convertible corporate bonds can sell the options in the bonds separately and keep ordinary corporate bonds. Or sell ordinary corporate bonds and keep the option. Each forms a market, which can be divided or merged. It can be disassembled at will, which is a great progress in the successful application of financial engineering in financial markets.
Question 2: What do you mean by convertible bonds? Convertible bonds are called convertible corporate bonds. In the current domestic market, it refers to bonds that can be converted into company stocks under certain conditions. Convertible bonds have the dual attributes of creditor's rights and options, and their holders can choose to hold bonds until maturity to obtain the company's principal and interest; You can also choose to convert it into stocks within the agreed time and enjoy dividends or capital appreciation. Therefore, the investment community generally joked that convertible bonds are stocks that guarantee the principal for investors. good
Question 3: What is the meaning of convertible bonds? All convertible bonds are called convertible corporate bonds. In the current domestic market, it refers to bonds that can be converted into company stocks under certain conditions. Convertible bonds have the dual attributes of creditor's rights and options, and their holders can choose to hold bonds until maturity to obtain the company's principal and interest; You can also choose to convert it into stocks within the agreed time and enjoy dividends or capital appreciation. Therefore, the investment community generally joked that convertible bonds are stocks that guarantee the principal for investors.
When convertible bonds lose their conversion significance, as a low-interest bond, they still have fixed interest income. If the share conversion is realized, investors will get the proceeds from selling ordinary shares or get dividend income.
Convertible bonds have both the attributes of stocks and bonds, and combine the long-term growth potential of stocks with the advantages of security and fixed income of bonds. In addition, convertible bonds have priority over stocks.
Since 2009, the convertible bond market has experienced a wave of rising prices because of the rising share price. However, since August, convertible bonds have suddenly plummeted as a whole. As a result, the net value of funds holding convertible bonds in heavy positions, represented by industrial convertible bonds, fell rapidly, and their short-term performance was ruthlessly crushed. This pot of cold water makes the market re-examine the investment risk of convertible bonds.
Question 4: What is the conversion price of convertible bonds into stocks? Convertible bonds are called convertible corporate bonds. In the current domestic market, it refers to bonds that can be converted into company stocks under certain conditions. Convertible bonds have the dual attributes of creditor's rights and options, and their holders can choose to hold bonds until maturity to obtain the company's principal and interest; You can also choose to convert it into stocks within the agreed time and enjoy dividends or capital appreciation. Therefore, the investment community generally joked that convertible bonds are stocks that guarantee the principal for investors. Basic income: when convertible bonds lose their conversion significance, as a low-interest bond, they still have fixed interest income. If the share conversion is realized, investors will get the proceeds from selling ordinary shares or get dividend income. The biggest advantage: convertible bonds have the attributes of both stocks and bonds, and combine the long-term growth potential of stocks with the advantages of security and fixed income of bonds.
Investment strategy of convertible bonds
As can be seen from the above, convertible bonds have both the attributes of stocks and bonds, and combine the long-term growth potential of stocks with the security and income advantages of bonds. However, in order to improve the investment income of convertible bonds, investors should choose appropriate investment strategies and investment opportunities according to their own capital and required income level.
(A) the basic strategy of convertible bond investment
Investors should focus on predicting the future performance and cash flow of the issuing company and determining the investment varieties of convertible bonds according to the solvency, industry status, development strategy and comprehensive fundamental factors such as finance, products, management, technology and market.
One is prudent investment, that is, investing in convertible bonds whose market price is close to the value of the bond itself, and obtaining stable investment income under the premise of effectively controlling investment risks;
Second, aggressive investment, that is, convertible bonds with good investment fundamentals, growth and favorable conversion price correction conditions, can obtain investment income not lower than the benchmark stock under the premise of relatively low risk;
The third is to find arbitrage opportunities, that is, there is a certain inefficiency in the market, and arbitrage is carried out when the market price of convertible bonds is lower than the conversion price.
(B) the investment strategy of convertible bonds at different prices
Convertible bonds will show different characteristics at different price points. Therefore, investors should treat convertible bonds with different prices differently.
First, high-priced convertible bonds with a bond premium of over 30%. This convertible bond has a large downside, but if investors are optimistic about their benchmark stocks, they can invest in this convertible bond. Because on the one hand, the handling fee of convertible bonds is lower than that of stocks, which can reduce the transaction cost of investors; On the other hand, if convertible bonds are held for a long time, they can earn certain interest income. In addition, in the case of a long-term decline in the stock market, convertible bonds also have certain resilience. Therefore, the future earnings of such convertible bonds still have a comparative advantage over ordinary stocks.
Second, the bond premium 15% to 30% of the medium-priced convertible bonds. This kind of convertible bonds is moderate, and the conversion value is much lower than its market price. When the stock market rises, the gains are relatively slow; But when the stock market falls, its losses will be smaller. When investing in this kind of convertible bonds, we can pay more attention to convertible bonds with relatively low conversion premium rate and large fluctuation of benchmark stocks.
Third, low-priced convertible bonds with a bond premium below 15%. This kind of convertible bonds has strong debt and limited downside. Generally speaking, there will be no big losses in medium and long-term investment, and it is very likely to share the gains from the stock market rise in the future. This convertible bond is more suitable for low-risk investors who expect to benefit from medium and long-term investments. (C) the timing strategy of convertible bond investment
The debt service characteristics of convertible bonds ensure stable income; The characteristics of being convertible into stocks provide opportunities for obtaining higher returns. Generally speaking, according to the market situation, convertible bonds can be operated in three ways:
First, when the stock market is improving, the characteristics of convertible bonds are more obvious, and the market pricing considers stocks more; When the price of convertible bonds rises with the rise of the stock market and exceeds its original cost price, the holder should throw out convertible bonds to directly obtain the spread income.
Second, when the stock market turns from weak to strong, or the performance of the company issuing convertible bonds turns better, and its share price is expected to rise sharply, investors can convert convertible bonds into stocks at the conversion price to enjoy the company's better performance dividends or the gains from stock climbing.
Third, when the stock market is depressed, the characteristics of convertible bonds are more obvious, and the market pricing considers debt more; The prices of convertible bonds and benchmark stocks both fell, so it is not appropriate to sell convertible bonds and convert them into stocks. Investors should keep convertible bonds in order to obtain fixed due principal and interest income.
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Problems needing attention in convertible bond investment
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Question 5: How many convertible bonds are there in the market now? 10 is too much, who counted it!
Question 6: What is the meaning of convertible bonds? The full name is convertible bond (convertible bond; CB)
In the past, there were only convertible bonds in the market, but now there are convertible bonds in Taiwan Province Province.
Simply explained as convertible corporate bonds, listed companies issue corporate bonds, stating that creditors (that is, bond investors) can exchange the bonds for shares of a company after holding them for a period of time (this is called lock-up period). The creditor suddenly became the owner of the shareholder status. The conversion ratio is calculated by dividing the face value of the bond by a specific conversion price. For example, the face value of bonds is 65,438+000,000 yuan, which can be converted into 2000 shares, that is, 20 lots, divided by the conversion price in 50 yuan.
If a company's stock moves from the market price to 60 yuan, investors will be happy to convert it, because the converted stock is 50 yuan, so after the stock is converted, it can be sold in 60 yuan at the market price, and each share can earn 10 yuan, totaling 20,000 yuan. This situation is called converted value. This kind of convertible bond is called in-price convertible bond.
On the other hand, if the market price of a company's stock falls to 40 yuan, investors will be reluctant to convert it, because the conversion cost is 50 yuan. If you really want to hold shares in the company, just go to the market and buy them at the price of 40 yuan, not at the cost price of 50 yuan. This situation, we call it no conversion value. This kind of convertible bond is called sky-high convertible bond.
At first glance, the out-of-price convertible bonds seem unfavorable to investors, but don't forget that they are bonds and coupon rate can draw interest. Even in zero coupon bond, there are discount subsidies. Because convertible bonds have this feature, when it encounters bad news, its market price will stop falling to a certain extent, because its bond nature protects its value. This is called downlink protection.
As for the convertible bonds in Taiwan Province Province, it means that the creditors (bond investors) can exchange the bonds with the central bank for a state-owned stock held by the state treasury after holding them for a period of time (this is called lock-up period). Similarly, creditors have become state-owned shareholders.
Convertible bonds are derivative financial products that span the stock and bond markets. Because there are also convertible options, the bond market in Taiwan Province Province has successfully launched a segmented market with separate creditor's rights. In other words, investors who hold convertible corporate bonds can sell the options in the bonds separately and keep ordinary corporate bonds. Or sell ordinary corporate bonds and keep the option. Each forms a market, which can be divided or merged. It can be disassembled at will, which is a great progress in the successful application of financial engineering in financial markets.
Question 7: What bonds do credit bonds include? Does it include convertible bonds? At present, there are mainly three types of bonds in the bond market, namely * * * bonds, convertible bonds and credit bonds. Among them, credit bonds refer to bonds issued by entities other than * * * and agreed to pay off cash flow with a certain principal and interest. Specifically, it includes corporate bonds, corporate bonds, short-term financing bonds, medium-term notes, separate convertible bonds, asset-backed securities, subordinated bonds and other varieties.
In order to explore the new mode of capital injection reform of state-owned financial institutions, Central Huijin Investment Co., Ltd. (hereinafter referred to as "Huijin Company") successfully issued two RMB bonds in the national inter-bank bond market in 20 10, with an amount of * *109 billion yuan. Huijin Bond was named as * * * Support Institutional Bond. * * * Supporting institutional bonds belongs to because the issuer is not * * *.
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Question 8: What is the difference between separated convertible bonds and ordinary convertible bonds? First of all, the essential difference between convertible bonds and ordinary convertible bonds is that bonds and options can be traded separately. Traditional convertible bonds have both debt and shares, and the characteristic of separate trading convertible bonds is to separate debt and shares, and its liquidity is stronger than that of ordinary convertible bonds. That is to say, after investors who trade convertible bonds separately exercise their subscription rights, their creditor's rights still exist, and they can still hold the principal they expect to repay and earn interest; Once the investors of ordinary convertible bonds exercise their subscription rights, their creditor's rights will cease to exist.
Secondly, there are no reset and redemption clauses for the separated convertible bonds, which avoids that ordinary issuers of convertible bonds often promote the conversion by constantly modifying the conversion price or compulsory redemption, rather than improving the company's operating performance.
Thirdly, the warrants in ordinary convertible bonds generally expire at the same time as bonds, while convertible bonds traded separately are different. The duration of warrants for convertible corporate bonds traded separately shall not exceed the term of corporate bonds, and shall not be less than six months from the date of issuance. After issuance, corporate bonds and warrants are traded in the bond market and warrant market of the exchange respectively, and the bonds will repay the principal and interest at maturity; Warrants can be sold or exercised at maturity.
Finally, compared with ordinary convertible bonds, the information it sends to the market is also very different. Because the design of convertible bonds in China is more similar to equity financing, the market information transmitted by equity financing and debt financing is confused. The detachable convertible bonds have rigid pressure on the company's debt repayment, and the bond financing information transmitted is more obvious.
Question 9: How do ordinary individual investors invest in convertible bonds? Just open a securities account and buy it directly. The specific operation is similar to buying stocks. Now you can open an account online. Make an appointment with your ID card and bank card. It will be finished in a few minutes.
Question 10: What are the convertible bonds traded in the market? 1. At present, the convertible bond funds on the market include Xingquan Convertible Bond, Bosera Convertible Bond, Guo Fu Convertible Bond, Huaan Convertible Bond and Huitianfu Convertible Bond. 2. The main investment target of convertible bond funds is convertible bonds, and the main investment of overseas convertible bond funds also includes convertible preferred shares, so it is also called convertible funds. Investors who hold convertible bonds can convert bonds into stocks during the conversion period, or sell convertible bonds directly in the market for realization, or choose to hold bonds at maturity and collect principal and interest. The basic elements of convertible bonds include benchmark stock, bond interest rate, bond term, conversion term, conversion price, redemption and resale terms, etc. Convertible bonds are a mixture of ordinary bonds and options that can be converted into stocks. The difference between the convertible bond price and the benchmark stock price constitutes the value of the implied option.