Because of the recent crazy lack of money between banks, reverse repurchase, agreement deposits and other means of higher returns, resulting in a large number of fund redemption, the fund was forced to sell bonds to cut meat, and the losses were more serious. The following is a passage from the news.

"The overnight repo rate has become a usury!" On June 20th, I saw that the overnight repo rate of banks once hit 30%. The deputy director of fixed income investment of a fund company in Shanghai lamented that the agreed deposit interest rate in the previous month was usually around 4.5%, but recently it soared to 10%. "Rich people have gone to buy agreement deposits, which are safe and have high returns. Who will stay in the debt base?

Debt-based managers "bleed" to sell bonds

Wave after wave of redemption makes people unprepared.

It is reported that the recent collective redemption of open-ended debt base is more serious. The above investment director said that on the one hand, because the prices of other assets soared, institutional investors redeemed the debt base to buy other varieties with higher returns. On the other hand, because the main institutional investors of bond funds are insurance institutions, there are many financial products. In the case of tight funds, insurance institutions have to deleverage, so they also redeem debt-based funds.

The sudden wave of redemption caught bond fund managers off guard. In order to cope with the redemption, they can only sell their debts quickly. However, a bond fund manager revealed that due to the shortage of funds, no one in the bond market wanted bonds. In this case, debt-based managers can only "bleed" to sell bonds, which has aggravated the decline in bond prices.