The so-called debt-to-equity swap refers to the establishment of financial asset management companies by the state, the acquisition of non-performing assets of banks, and the transformation of the original creditor-debtor relationship between banks and enterprises into the holding (or shareholding) and controlled relationship between financial asset management companies and enterprises. After the creditor's rights are converted into equity, the original principal and interest will be paid out in shares. In fact, the national financial asset management company has become a phased shareholder of the enterprise, exercising shareholder rights according to law and participating in the company's major affairs decision-making, but not participating in the normal production and operation activities of the enterprise. After the economic situation of the enterprise improves, the funds will be recovered through listing, transfer or enterprise repurchase.

In terms of calculation, please refer to the jade of other mountains.

The stock price of ICBC is 3.82 yuan, the debt is 108.2 yuan, and the conversion price is 3.53 yuan.

How many shares can a debt be converted into: 100/3.53 =28.3286 shares, 3.82 yuan per share, and the converted value after a debt is converted into shares: 28.3286x3.82= 108.2 yuan.

(It is the current debt price)

So there is no arbitrage space.

Convertible bond price =( 100x share price)/conversion price, and 100 is the default conversion price.

For example: ICBC Bond 108.2 Yuan =( 100x3.82 share price) /3.53 converted share price.

High premium means that convertible bonds have high positioning and relatively high risks. At this time, it is not necessary to guess the future trend, but to put hedging in the first place and draw a conclusion that it is wise not to intervene. On the premise that the convertible bond price is lower than 120 yuan, when the premium rate of convertible bonds is lower than 5%, there is almost no risk, so it is recommended to buy; The premium rate of share conversion is between 5%- 10%, and the risk is low, so it is recommended to increase the holdings; The premium rate of share conversion is between 10%- 15%, which has certain risks, so wait and see; However, the premium rate of share conversion is above 15%, which is risky. If you don't participate, you can wait for the correction of the stock price. When the price of convertible bonds is too high, it is almost the same as the basic stocks and is not included. Steady investment strategy, the company's development prospects are good, the absolute value of premium rate is not high, and convertible bonds have entered the 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 convertible bonds with low absolute price are characterized by strong debt and strong anti-risk ability. At the same time, if the basic stock price maintains a good development momentum, it can also obtain considerable investment income.

Take the red convertible bonds of 1 10227 as an example. 1 14 10, the closing price of red convertible bonds in October was 1 15.48 yuan, the closing price of 600227 red convertible bonds was 7.23 yuan, and the initial conversion price was 24.93 yuan.

Conversion value =100/6.94× 7.23 =104.32.

Premium rate of convertible bonds = (current price of convertible bonds-conversion value)/conversion value ×100% = (115.48-104.33)/104.33 =/kloc-0.

Pay special attention to the fact that convertible bonds generally have an early redemption clause. Investors holding convertible bonds should pay close attention to this. When the company issues a redemption announcement, they should convert shares in time or sell convertible bonds directly, otherwise they may suffer huge losses. Because companies generally only redeem all unconverted bonds with a very small margin (generally not exceeding 105 yuan), and convertible bonds that meet the redemption conditions are generally above 130 yuan, and some even reach as high as 200 yuan! In August 2007, investors including three fund companies failed to convert their shares in time, resulting in a total loss of more than 20 million yuan.