1. What is convertible bond? Convertible bonds are bonds issued by listed companies. You can apply for bonds of this company, which is equivalent to the company borrowing money from you. There are three ways to deal with bonds. The first is to recover the principal and interest after maturity; The second is debt-to-equity swap, which converts bonds into equivalent stocks, so that interest on bonds can no longer be earned. The third is to sell bonds, so that you can earn the difference through the fluctuation of bond prices.
2. What does it mean to make new bonds? Playing new debt means buying new debt, just like playing new shares. But because too many people subscribe, they usually subscribe by lottery. If you are lucky enough to win the lottery, you can buy this new debt.
3. Is it a waste of money to play new convertible bonds? Is it a deterrent? So many people apply? This is because new debt usually has a good premium. After the new bonds are listed in the lottery, they can generally earn dozens of points immediately, and there are more lucky ones. Therefore, making new debts is to make money for nothing.
The above is my opinion on this issue, which is purely personal and for reference only. If you have different opinions, you can leave a message in the comment area to discuss together. Remember to like and pay attention after reading it.