The strategy of convertible bonds -- - (cake sharing, premium, forced redemption, downward revision, double low)

What is a convertible bond

The bond and conversion characteristics of convertible bonds correspond to the dual characteristics of creditor's rights and options , That is, the value of convertible bonds = Bond value + Stock call option . I use the vernacular to say , A convertible bond is an IOU that the company lends you money , The interest rate shall not be lower than the current monetary interest rate , That is to say, it must be higher than the monetary fund you buy on Alipay . Here are five ways to introduce other properties of convertible bonds .

Cake spreading playing method

The initial issue price of the convertible bond is 100 element . The core of the cake spreading method is when the batch of convertible bonds is lower than 100 Yuan time , You buy all in batches 100 Convertible bonds less than yuan （ Of course, the lower the better ）.
What you might encounter at this time ：
Prices continue to fall , For example, I fell down 90 element , But the current period ends , He has to be 110 I will pay you the principal plus interest at the price of yuan . Your earnings are 10%+
Rise in price , here we are 130 Yuan of above , Or there is 20%+ Make price poly when earning , For example, you can set as long as the price is not lower than 120, Then you always have , The price fell below 120 sell . As prices rise , You constantly improve your profit position . Until finally poly was out . At this time, your income must be 20%+

Forced redemption play

On the basis of cake spreading playing method , There can be strong redemption methods , When the price is at 130 Above yuan , There may be forced redemptions , Sell in time at this time . Because this forced redemption will redeem your bonds at a very low price , For example, the current price is 130, Then his redemption price is likely to be 101, If you don't sell it, you will have to bear a great loss .
The strong redemption strategy actually has a strong logic . First , The conditions for issuing convertible bonds are very strict . Basically, only very good companies can issue ,4000+ Company only 300 Many companies can issue convertible bonds . Another is that all companies want to issue convertible bonds , because , You can borrow this money without changing it , So why not change it ？ Because you can convert debt into equity , After he wants to borrow money from you , Current price 130 More , You can exchange it all for stock , You've earned 30%+ 了 , Don't force me to redeem , If you force me to redeem, I will give you money in real gold and platinum , But I won't have to pay back the money after you change it into stock .

Practice the playing method

Then we can easily be quite , If the price is always low , For example, the value of share conversion is 80 many , Did I lose money soon after I changed shares , At this time, who would be so stupid as to change shares by himself ？
So there is the next amendment clause . The next amendment is to allow you to convert into stocks at a lower price. Are you happy . Would be more willing to convert shares . Generally, the conversion value will rise after the lower revision . Once the stock goes up , But you can choose to buy at a lower price , For example, now the stock is 7 element , But you can 6 I'm going to buy... At the price of RMB ,（ This reflects the attributes of options ）, But you can also choose not to change , Get the principal and interest of the bond at that time , The choice lies in you . From the point of view of the company, I must hope you can change into stock , Because you don't have to pay cash .

Double low play

There are two important references for convertible bonds. One is the face value , One is the premium rate . The nominal value is well understood , It's the current price , The premium rate is the value of your convertible bonds after conversion into shares , If you encounter a small premium rate and a small par value, or even only 100 element , We can call it the money boy . It's good to meet this opportunity once a year .
This double low strategy can be directly used in jisilu , Convertible bond sector , see
Pictured ：

The top ones 100 Yuan is because it is a new debt , It has not been released yet , We don't care （ Let me mention , The new operation of new debt is also very profitable .）
Actually this zhengbang Convertible bonds were a good place to buy yesterday , Yesterday's price was 100 Head start , Today, the daily limit was raised . Of course, at the moment hongtao Convertible bonds are also very good .
other 130 We will not consider the above , There is a risk of foreclosure .

Premium play

In the above introduction, we can also find that when the premium rate is negative , You are sure to make a profit when you buy and exchange shares . you 're right , So this kind of almost once it exists, it will be bought soon , So there are not many opportunities .

summary

The main concern is the risk , in general , Convertible bond is basically a zero risk operation . The premise must be that you are 100 Buy below yuan , And the lower the better .
So let's simulate what you can encounter ：
1. This bond is very stable , Finally, I will give you regular interest , You put your money in the bank . But this one can be used at any time . The probability of this 5% about .
2. The bond was forcibly redeemed , Then your profits are likely to 40% about , This probability 95% about .
3. The bond is in default , The company was delisted , At this time, the convertible bonds you hold will still be repaid to you , Even if the company goes bankrupt , Convertible bonds are still the priority to obtain compensation , This probability 0%, Because at present, convertible bonds have been used since the last century 90 Since the generation existed , No breach of contract . None of them broke the contract . And spread the cake （ Buy a lot ） This kind of loss is also limited .

The difficulty lies in waiting , Most of the time waiting in the empty position , Because many opportunities are once-in-a-year . When you encounter it, you should seize it ！
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