Convertible bond is a comprehensive financial instrument, which has the dual attributes of bond and stock. The convertible bond with the letter R is a kind of convertible bond with special terms. Among them, R stands for "the holder can choose to redeem after the market value drops by 10% or 15%". The existence of such bonds is mainly to protect the interests of investors and minimize their losses when the market fluctuates.

Convertible bonds with R have certain advantages. First of all, when the market remains weak, the holder's measurement of the value of convertible bonds is more secure, because after the market value drops to a certain extent, the holder can choose to redeem, that is, the capital can be guaranteed through redemption. Secondly, this bond enhances the trading confidence between investors and issuers, because it shows investors that issuers respect investors.

What should I pay attention to when holding convertible bonds with the word R?

Although convertible bonds with the letter R have certain advantages, investors still need to pay attention to risks. First of all, this kind of bond has a long term, which means that its liquidity is not as good as other securities products, and it is easy to cause capital blockage. Secondly, the redemption operation has a time limit, and if it is not redeemed within the specified time, the promise may not be fulfilled. Thirdly, the yield of this bond may not be too high, and investors need to carefully measure their risk tolerance before investing.