Convertible bonds are bonds that can be converted into stocks. It can be bought and sold like a stock, and it is a T+0 transaction, with no price limit. However, convertible bonds also have the risk of breaking. What if the convertible bonds are broken?
There is no need to be too alarmed when convertible bonds break. These two points can protect the rights and interests of investors:
(1) Convertible bonds actually have the properties of bonds. At maturity, the issuer may collect the principal and interest according to the face value of the convertible bonds and the specified interest. If an investor buys a convertible bond at 100 yuan, and then the price falls to 80 yuan, the issuer will pay the investor the principal of 100 yuan plus some interest. However, bonds also have the risk of default, so everyone should pay attention.
(2) The convertible bonds have mandatory resale clauses. If the price of convertible bonds falls beyond the relevant provisions within a certain period of time, listed companies must buy back convertible bonds at a price higher than the face value.
In short, due to the bond nature of convertible bonds and the mandatory resale clause of convertible bonds, the risk of investors will be affected.
The stock market immediately voted with its feet. I remember falling from 90 yuan to a minimum of 60 yuan. At that time, I was timid and took a fancy to another good stock, so I reluctantly cut the meat for more than 70 yuan.
In the end, I lost 5900 yuan, close to 6000 yuan. Who knows that after cutting, it slowly rose back to my cost price.
It's really cut with leeks.
From the current standpoint, convertible bonds are actually bonds, and the face value of bonds is 100 yuan. As long as the listed company corresponding to the convertible bonds does not close its doors and withdraw from the market, the convertible bonds can be held slowly, and then the money will be taken when the convertible bonds expire.
Finally, after this loss, I stopped buying convertible bonds and bought ETF of convertible bonds instead. If it really thunders, the relative loss is very small.
Of course, convertible bonds of new shares must be purchased.
Let's see what happens. If the company loses money or whether it is st or delisting, the bond will repay the principal and interest at maturity. If the company goes bankrupt or insolvent, the bonds may be lost or partially lost.
Why "spread the pie" in convertible bonds? One of the important functions is to minimize the risk of "mine explosion". For example, if you have 1 100,000 dollars to buy 80 convertible bonds at a low price, and one of them bursts, even if all of them are lost (which is impossible), it will only be1100,000 dollars, which can be smoothed out in a few days under good market conditions.
So a good convertible bond position should not be too heavy. When you are mature, you will gain one and change another. As long as there is enough patience, there will be good returns.
We have never experienced the event of convertible bonds, at least so far, none of the convertible bonds of A shares have defaulted. Whether there will be one in the future, we dare not talk nonsense. However, in my personal understanding, the lower the price of convertible bonds, the more you buy. Take this year's situation as an example, whether it is Sute convertible bonds, Hongda convertible bonds, Guanghui convertible bonds, and Yayao convertible bonds. But it can climb from 70-80 to 100 in just four months. The rate of return is no less than that of star fund managers such as Kun Kun and Caicai. Time is a good friend of investment. Instead of worrying about the thunderstorm that day, it is better to seize the opportunity while it is chaotic. Do you think the thunderstorm you think is the thunderstorm you think?
Generally, there is a positive stock storm, and then there is the issue of convertible bonds.
Convertible bonds are convertible bonds issued by listed companies for financing.
Where the issuance of convertible bonds by a listed company requires the approval of the regulatory authorities, the listed company issuing convertible bonds shall meet the following conditions:
1, which has been profitable continuously for the last three years, and the average return on equity in the last three years is above 10%; Companies belonging to energy, raw materials and infrastructure can be slightly lower, but not less than 7%;
2. After issuing convertible corporate bonds, the asset-liability ratio is not higher than 70%;
3. The accumulated bond balance shall not exceed 40% of the company's net assets;
4. The investment of raised funds conforms to the national industrial policy;
5. The amount of convertible corporate bonds issued shall not be less than RMB 1 100 million yuan;
6. Other conditions stipulated by the State Council Securities Commission.
Judging from the above conditions, the audit of issuing convertible bonds is still very strict. Even if it is broken, the loss is not great. The risk of new debt is relatively small.
The risk of convertible bonds in the secondary market is indeed much higher than that of new bonds. But so far, there are no convertible bonds that have defaulted. The thunder mentioned here should be buying convertible bonds that have fallen sharply. For example, the convertible bonds of HSBC fell from 1 18 yuan to 7 1 yuan Bird due to the company's suspension of production, suspension of listing and downgrade. Many people are worried about breach of contract, but in the end they redeem them at 103 yuan each.
Convertible bonds that encounter thunderstorms are nothing more than these choices: selling, holding maturity, waiting for repair or selling back.
Protect investors' rights and interests by lowering the conversion price and selling back. I don't know if you have noticed, but most convertible bonds have repair and resale clauses. For example, when convertible bonds fall to a certain extent, the issuer will consider whether it is necessary to modify the conversion price. If it is repaired, investors will benefit. It should be noted that reducing the share conversion price is a right rather than an obligation of listed companies, so listed companies have the right to choose not to reduce it.
Selling back refers to taking back the convertible bonds in the hands of investors at a price slightly higher than the face value of the convertible bonds during the selling back period. The resale price is generally 100 yuan. It will take 46 years.
Another advantage of investing in convertible bonds is that convertible bonds have the characteristics of priority payment. As long as the company has not closed down, the remaining assets and stocks will be used to pay off the convertible bonds in the hands of investors.
With regard to risks, what we need to do is to take precautions in advance, instead of waiting for risks to come.
How to prevent it? Let's talk about investment strategy first.
1, diversify investment
Don't put all your money on one convertible bond, but invest in multiple convertible bonds, such as 20 bonds and 30 bonds, and control the position of each convertible bond below 5%. Even if there is a small loss, it only accounts for a small part.
2. Open positions in batches
You can't rush to open a position, you need to do it step by step. You can open positions in several batches. For example, pre-10 convertible bonds with double low values below 120 are screened. Open positions from the screening results, and then continue to screen every day until the opening is completed.
3. Regular rotation
The purpose of regular rotation is to gain income. For example, once every 1 month, unqualified convertible bonds are rotated, and newly qualified convertible bonds are rotated. In addition to regular rotation, there is also a single rotation. For example, convertible bonds will be transferred out when they rise to 130.
Here's a tip. Now many brokers have the function of conditional orders, including stop loss, take profit, sell back, buy at a fixed price and other strategies. Very convenient. Making good use of this function can make efficiency fly.
4. Pay attention to the announcements issued by companies holding convertible bonds.
Investment is a long-term thing, and a failure is not terrible. The terrible thing is that there is no chance to start again because there is no risk aversion in advance.
It is important to keep the principal.
A variety of routes, one is to sell at a low price; But continue to hold, wait for the opportunity to turn over, or add positions to stabilize costs; The third is to continue to hold it and wait for the redemption of the convertible bond issuing company, at least paying dividends every year.
Generally speaking, convertible bonds have both stock base and debt base, and the risk is relatively low, but there is no guarantee that listed companies will not be able to pay back the money if they go bankrupt.
Do more preparatory work before buying to ensure that the convertible bonds you buy don't step on thunder.
From 1992 to now, there has not been a case of default of convertible bonds.
First of all, convertible bonds are bonds issued by listed companies, and it is not an easy task to issue them once. As long as the listed company does not go bankrupt, it must repay the principal and interest.
Secondly, there is absolutely no need for companies that issue convertible bonds not to pay back the money, and the input and output are out of proportion. For listed companies that issue convertible bonds, once they default, the CSRC will use the company's assets and shares to pay off debts to investors. It is not worth it to shake the company's billions of convertible bonds.
The positive share price has fallen into a dog, and convertible bonds are certainly not much better. If the recovery clause is properly used, the listed company will recover the convertible bonds at the lowest price of 100 yuan. Investors will not suffer, so why not sell?
Generally, it is a positive stock storm, and convertible bonds suffer.
But the reason why convertible bonds are convertible bonds is different from stocks. Convertible bonds are mainly debt-oriented. Moreover, convertible bonds are guaranteed. As long as the company has assets, it has to be redeemed. Even if the company goes bankrupt, it will redeem the remaining assets first and then compensate the stock investors for their losses. Therefore, convertible bonds are called guaranteed at the bottom and not capped at the top.
So generally speaking, as long as the price of convertible bonds is lower than the face value of bonds, the possibility of losses is still very low.