The risk of ordinary investors investing in convertible bonds is lower than that of stocks, but the expected annualized expected return is not much different.
In the market operation, it is difficult to judge the market outlook. But convertible bonds are different. There are many ways to judge whether the price is too high or too low. One way is to refer to the premium rate of share conversion. For example, red convertible bonds were listed on123 October 2007, 10. On the same day, the opening price of common shares was RMB yuan, the closing price was RMB yuan, and the opening price of convertible bonds was RMB yuan, and the closing price was RMB yuan. From the stock price, conversion rate and conversion price, it can be calculated that the premium rate is high, indicating that the position of convertible bonds is high and the risk is relatively high.
At this time, it is not necessary to guess the future trend, but to put risk aversion in the first place and come to the conclusion that it is wise not to intervene. Estimate the risk with reference to premium rate, avoid being wise after the event and guide the actual operation.
However, when the premium of share conversion is negative, it will attract great attention. Negative premium rate tells us that risk-free arbitrage opportunities may appear soon. Of course, the premium rate of share conversion is only an auxiliary index, and other methods are also used for comprehensive judgment.
When should convertible bonds be bought, increased, watched or amended?
1, on the premise that the convertible bond price is lower than 120 yuan, there is almost no risk when the premium rate of convertible bonds is lower than 5%, so it is recommended to buy;
2. The premium rate of share conversion is between 5%- 10%, and the risk is low, so it is recommended to increase the holdings;
3. The premium rate of share conversion is between 10%- 15%, which has certain risks, so wait and see;
4. If the premium rate of share conversion is above 15%, the risk is high, and you can wait for the correction of the stock price if you don't participate.
5. When the price of convertible bonds is too high, it is almost the same as the stock and is not included.
Steady investment strategy:
The company has a good development prospect, the absolute value of premium rate is not high, and it has entered the convertible bond conversion period. This convertible bond is characterized by strong stock, large room for price increase and relatively small risk.
Defensive investment strategy:
The company's share price has certain development prospects, and the absolute price is not high. This convertible bond is characterized by strong debt and strong risk resistance. At the same time, if the basic stock price maintains a good development momentum, it can also obtain considerable expected annualized expected return on investment.
Among the issued funds, Xingye Convertible Bond Fund mainly invests in convertible bonds, and many funds such as Huaan Bao Li Allocation, Boshi Balanced Allocation, Baokang Flexible Allocation and TEDA ABN Amro Efficiency can also invest in this variety.