There are three main ways to invest in leveraged bond funds: one is to buy at the time of issuance, the other is to buy leveraged bond funds directly after listing, and the third is to buy parent fund shares after listing and sell priority shares after splitting.

Investors need to consider the following four factors when investing in leveraged debt base:

1, investment type

Leveraged debt base includes pure debt products and mixed debt products that participate in stock market investment. Mixed debt products can invest no more than 20% of stock securities and also have high volatility. Pure debt products are mainly influenced by the bond market, and if the proportion of convertible bonds held is high, they will also greatly increase in value in the bull market. Different types of bonds with good bond market environment have different performances. Therefore, in the economic environment of economic depression and low inflation, financial debt, national debt and high-grade credit debt should be selected with higher leverage debt base. When the economy improves, you can choose low-grade credit bonds and convertible bonds with more leveraged debt bases.

2. Leverage coefficient

Different from the leveraged stock base, the leverage of the leveraged debt base includes the leverage of the parent fund to invest in bonds and the net leverage brought to A-share financing, which are collectively called comprehensive leverage. Investors should make a comprehensive comparison when choosing highly leveraged funds. Some funds are high before and low after, and some funds are low before and high after. Generally speaking, the higher the comprehensive leverage, the more excess returns and the higher the risks.

3. Discount insurance premium rate level

When the discount rate is high, it provides investors with a higher safety mat. On the contrary, when the insurance rate is high, the risk is relatively high. Due to different designs, investors should also refer to the maturity date, fund management level and liquidity when looking at the discount rate.

4. Asset liquidity

Liquidity directly determines whether the price of the selected fund fully reflects the trend of the bond market and investors' expectations, and whether it can be bought and sold smoothly. The price of funds with low liquidity is easily affected by small funds, and the logic of price trend even runs counter to the change of value and the trend of bond market, so it is difficult to judge its future trend when investing in such funds. At the same time, when buying and selling such funds, it is difficult to find a counterparty and it is easy to miss the opportunity to buy and sell. The key to checking liquidity is the daily turnover and turnover. Generally speaking, the more market share, the higher the liquidity.