Financing cost = annual fee/(financing amount financing cost). Generally speaking, the financing cost of an enterprise includes two parts: handling fee and financing cost. Because most small and micro enterprises have less loans (financing amount) and low reputation, other expenses (financing expenses) paid in the financing process are relatively high.

Bond funds generally allocate three types of assets: ordinary bonds, convertible bonds and stocks. The so-called secondary debt base is free stock investment under the limit of 20% position.

The average leverage ratio of secondary debt base is about 120%, the average allocation of stocks is about 10%, the allocation ratio of ordinary bonds is about 90%, and the average allocation ratio of convertible bonds mainly fluctuates between 5% and 20%, which will be adjusted with market fluctuations.

By splitting the income of the secondary debt base, we can get four main sources of income: 1, the opportunity of asset allocation; 2. Income from stock investment; 3. Bond investment income; 4. Investment income of convertible bonds.

Accordingly, an excellent secondary debt base needs to have timing ability in the allocation of stocks and bonds; Strive for high returns on stock investment; In bond investment, excess returns are created through long-term matching, credit sinking and leverage allocation; In convertible bond investment, you can have the ability to choose bonds.