Bond funds mainly invest in fixed-income financial instruments, including government bonds, central bank bills, financial bonds, corporate bonds, convertible bonds and asset-backed securities. The following is the knowledge I brought to you about the common varieties of bond fund portfolios. Welcome to reading.
Common varieties of bond fund portfolio Bond funds mainly invest in fixed-income financial instruments, including government bonds, central bank bills, financial bonds, corporate bonds, convertible bonds and asset-backed securities.
National debt is a bond issued by the state, a government bond issued by the central government to raise financial funds, and a debt certificate issued by the central government to investors, promising to pay interest and repay the principal within a certain period of time. Because the issuer of national debt is the country, it has the highest credit and is recognized as the safest investment tool.
Central bank bills, that is, central bank bills, are short-term debt certificates issued by the central bank to commercial banks to regulate their excess reserves, and their essence is central bank bonds. Why do you call it? Central bank bills? , to highlight its short-term characteristics (judging from the issued central bank bills, the shortest term is 3 months, and the longest term is only 1 year). The purpose of issuing bills by the central bank is to withdraw funds and freeze the surplus funds of the central bank to alleviate the inflationary pressure faced by the market, which is a monetary policy.
Financial bonds are bonds issued by banks and non-bank financial institutions. Because banks and other financial institutions occupy a special position in a country's economy, the government has strict supervision over their operations, and the credit rating of financial bonds is usually higher than that of other non-financial institutions, so the default risk is relatively small and the security is high. Therefore, the interest rate of financial bonds is usually lower than that of ordinary corporate bonds, but higher than that of less risky national debt and bank savings deposits.
Corporate bonds refer to bonds issued by enterprises engaged in economic activities such as production, trade and transportation. At present, China's corporate bonds mainly include local corporate bonds, key corporate bonds, corporate bonds with interest coupons, corporate bonds with certificates of deposit, corporate bonds with product quotas and corporate short-term financing bonds.
On August 14, 2007, the CSRC promulgated and implemented the Pilot Measures for Corporate Bond Issuance, which marked the official launch of corporate bond issuance in China. Corporate bonds are currently bonds issued by listed companies. Corporate bonds are mainly audited by the National Development and Reform Commission, and corporate bonds are audited by the CSRC. Compared with corporate bonds, corporate bonds are more risky. Generally, listed companies have no credit rating, and bond investment mainly comes from credit risk. Therefore, in order to make up for the credit risk, the interest rate should be raised accordingly.
Convertible bonds are short for convertible corporate bonds. It is a corporate bond that can be converted into common stock at a specific time and under specific conditions. Convertible bonds have the characteristics of both bonds and stocks, and are creditor's rights, equity and convertible. The holder of convertible bonds also has the right to sell the bonds back to the issuer under certain conditions, and the issuer also has the right to redeem the bonds under certain conditions. Double option is the most important financial feature of convertible corporate bonds, which limits the risks and returns of investors and issuers to a certain range and can be used to hedge stocks and obtain more certain returns.
Asset-backed securities and asset securitization are similar to the relationship between father and son, and are actually a way of asset securitization. Generally speaking, asset securitization refers to obtaining financing by issuing securities in the capital market and selling assets that lack liquidity but have predictable returns, so as to maximize asset liquidity. The payment of asset-backed securities basically comes from the cash flow generated by the asset pool that supports the securities. The time to pay the principal in asset securitization often depends on the time involved in recovering the principal. The inherent unpredictability of the time to recover the principal and the corresponding time to pay the principal of asset-backed securities is a main feature that distinguishes asset-backed securities from other bonds.
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