Usually, the fewer investors in the market, the greater the probability of winning the lottery. The greater the total amount of new bonds issued, the higher the probability of investors winning the bid. On the contrary, the more investors the market buys, the smaller the probability of winning the lottery. The smaller the total amount of new bonds issued, the lower the probability of investors winning the bid. In the market, making new debts is not a certain thing. New bonds are also likely to lose money. After all, convertible bonds are likely to break, and the performance of positive shares will directly affect the market trend of convertible bonds. Generally speaking, when there is a large premium between the stock price and the conversion price, convertible bonds tend to rise, and vice versa. Therefore, investors must be cautious when making new debts. Moreover, with the increase of investors, the supply of convertible bonds is likely to increase, so that the new income will shrink.
First, create new debts.
Playing new bonds is to subscribe for newly issued bond fund products. When the general bond fund products were first issued, the issue price was relatively low. At this time, investors who buy newly issued bonds are called new bonds. At the time of purchase, they will choose investors who can buy bonds by drawing lots, which is the so-called lottery. Investors who win the lottery buy bonds at the issue price of bonds, which requires little cost, and then they can get higher returns by selling bonds. However, after the new debt is listed, it will generally not fall below the face value and will hardly lose money, so it will be a new debt.
Second, new debt subscription.
Subscribing for new bonds refers to subscribing for convertible bonds or exchangeable bonds issued by listed companies. Subscribing for new bonds generally refers to subscribing for convertible bonds or exchangeable bonds issued by listed companies. Convertible bonds are called convertible corporate bonds. Like other bonds, convertible bonds have stipulated interest rates and maturities, but unlike ordinary bonds, convertible bonds can be converted into stocks under certain conditions.