Convertible bonds are the main investment targets of convertible bonds and are suitable for long-term holding. Convertible bonds are corporate bonds that have the right to be converted into stocks. Within the specified period, bonds can be converted into stocks (benchmark stocks) of enterprises that issue convertible bonds at the specified conversion price, which is actually a call option. Managers who hold convertible bonds can convert bonds into stocks during the conversion period, or sell convertible bonds directly in cash in the market, or choose to hold bonds until maturity and collect principal and interest. In this way, convertible bonds not only have the nature of bonds, but also have the nature of equity assets. The rise of the underlying stock price will lead to the rise of the convertible bond price, because the holder can convert the bond into the underlying stock and sell it in the secondary market. On the contrary, if the underlying stock falls, the price of convertible bonds will fall or even fall below the face value. Therefore, the price of convertible bonds is basically consistent with the fluctuation of stocks.

Due to the nature of bonds, the price decline of convertible bonds is limited. The term of convertible bonds is generally 5-6 years, and the face value is 100 yuan. Coupon rate is generally low, generally not exceeding 1% in the first three years. Judging from historical data, it is very unlikely that the price of convertible bonds will fall below 80 yuan. 20 18 10 19, only the convertible bonds in Leo hit the lowest price of 78.8 yuan. After the discount, the annualized rate of return of the coupon rises sharply, which is very attractive and will trigger the purchase intervention. In addition, the risk of convertible bonds can be controlled, because the coupon will prevent the downside. The yield of convertible bonds depends not only on coupon rate, but also on the rise of the underlying stock. When the price of convertible bonds exceeds 130 yuan, the compulsory redemption clause will be triggered, and most holders will be converted into positive shares. In this way, the company can reduce the financial pressure and achieve a win-win situation for the company and investors. According to historical data, most convertible bonds were eventually converted into stocks.

Convertible bonds are niche investment products, and the stock scale is not large at present. Investors believe that the biggest investment value of convertible bonds lies in the late bear market. Because the stock price rose sharply in the bull market, bullish stock assets directly intervened in the ranks of some stock funds, and convertible bonds were not so interesting. In a bear market, convertible bonds will fall with the decline of stocks. Compared with pure bond funds, convertible bonds have no advantage. In a bear market, when the stock market has experienced a sharp decline, but the bottom is still uncertain, it is a golden opportunity to invest in convertible bonds. As mentioned above, convertible bonds have coupon protection, and even if the stock market is still falling, its falling space is limited. When the stock market improves, its price will rise with the underlying stock.

There are not many convertible bond funds in the market, and there are more than 30 convertible bond funds, all of which are small in scale. The most representative ones are Xingquan Convertible Bonds (34000 1) and Changxin Convertible Bonds (5 19977). Xingquan Convertible Bond Fund is the first convertible bond fund in China, established 15 years ago. In the year ending 20 18, 12 and 3 1, its return rate exceeded 640%, even exceeding some equity funds. Zhang Yahui, the current fund manager, took charge of the fund on August 20 15. Although he is not as outstanding as his predecessor, Yang Yun, his performance has been very stable. It is worth mentioning that Xingquan Fund is one of the earliest institutions in the industry to systematically study convertible bonds, which has a profound historical precipitation. Changxin Convertible Bond A has been established for seven years, and its cumulative yield exceeds 130%. Li Xiaoyu has been in charge of management since its establishment, and has never changed the fund manager, which is very commendable. Judging from the historical data, Changxin Convertible Bond has always maintained a high convertible bond position, which fluctuates greatly. Up to 20% of the stock positions are more radical, most of which are technology and information growth stocks.