With the development of the investment market, convertible bonds, an investment product, have gradually entered people's field of vision. Then, as an investment product, how should we buy convertible bonds? Multi-angle analysis, let's discuss the buying method of convertible bonds together.

First, the stock selection strategy

To buy convertible bonds, the first thing to do is to choose stocks. We need to consider some factors when choosing what kind of convertible bonds. First of all, we need to consider the company's fundamental situation, understand the company's industry advantages, the company's financial situation and other basic information. Secondly, we also need to consider the premium rate of convertible bonds. The lower the premium rate of convertible bonds, the greater our income space. Finally, we also need to consider the maturity of convertible bonds, which will directly affect our investment income.

Second, trading time.

After determining the stock selection strategy of convertible bonds, we need to pay attention to the trading time. Some people will buy convertible bonds before they expire and arbitrage when they expire. However, this situation does not apply to every convertible bond, and it needs to be selected according to the specific situation. For investors who hold convertible bonds for a long time, they need to pay close attention to the market situation in time and choose the right time to buy them.

Third, asset allocation.

Convertible bonds are different from other investment products such as stocks and funds, and are a kind of fixed-income products. Therefore, when purchasing convertible bonds, we should pay attention to risk control and make scientific asset allocation. Convertible bonds can be allocated in different proportions according to personal risk preference and asset size, so as to avoid putting all the funds into convertible bonds at one time, resulting in excessive risk.

Fourth, pay attention to transaction costs.

When buying convertible bonds, we also need to pay attention to transaction costs, including commission and stamp duty. The premium rate of some well-invested convertible bonds is low, so we need to wait patiently for our expected price to enter the market during the buying and selling process. However, some convertible bonds with small transaction volume will have higher purchase cost because of the difficulty in buying and selling, so it is necessary to control the transaction cost well.

To sum up, as an investment product with fixed income and guaranteed capital, convertible bonds need to comprehensively consider factors such as fundamentals, premium rate and maturity time, scientifically allocate assets according to personal risk preference, and conduct trading operations under the premise of controlling transaction costs.