#Convertible Bond Practice#
After learning this lesson, you can go to the fund manager’s cocktail party...
In fact, they may not necessarily understand so much.
If one works alone, without teamwork and company insider information, the level of fund managers will be almost the same as that of ordinary investors.
Therefore, investment is a benefit for ordinary people.
In this lesson, we have broken away from the most basic arbitrage (convertible bonds with a price of less than 100 yuan). Instead, analyze the purchase of convertible bonds for 100-130 yuan and strive to maximize benefits.
Without further ado, let’s go directly to the actual operation and learn the convertible bond arbitrage skills as soon as possible.
Elementary Arbitrage Tips on Convertible Bonds
People who have come into contact with convertible bonds say that this type of investment tool is safe and stable. Only those who have actually operated it know the charm of convertible bonds.
The basic arbitrage skills of convertible bonds are not difficult. Just open Jisilu to check the price of convertible bonds. If it is less than 100 yuan, then confirm the company's financial situation. If a company has debts and has a strong willingness to repay debts, then you can Buy some, this operation is elementary, simple and safe. It can be said that buying
below 100 yuan is 100% safe. It is not terrible if it falls. After all, the redemption at maturity will definitely be greater than 100 yuan. Even if it is sold back, it will still cost about 103. There is no other loss except wasted time.
Of course, such a buying operation will also encounter forced redemption. Once you encounter it, you will make a huge profit of more than 30%. If you are still a beginner, it is recommended that you try this method.
Of course, so far, the convertible bond market is also overvalued, and there are very few convertible bonds under 100 yuan. Therefore, we need to learn more advanced arbitrage techniques, which can increase the purchase price but reduce the risk.
Advanced convertible bond arbitrage skills
The market is always changing, and it is a bit difficult to buy high-quality convertible bonds within 100 yuan. Therefore, you must improve your screening skills to buy larger and higher-quality convertible bonds.
1. Determine the redemption price at maturity
If the redemption price at maturity is 110 yuan, then if the buying price is lower than 110 yuan, you will definitely not lose money. The worst result is to hold until maturity. At least you can earn the difference and interest.
If you buy something higher than the redemption price at maturity, you need to consider how much loss you can bear. For example, the redemption price at maturity is 110 yuan, and the price you bought is 120 yuan, then the loss cost is 10 yuan. If If you buy a lot of 10 convertible bonds, the possibility of loss is 100 yuan.
If you can afford it, you can certainly buy it directly. Of course, to see if it will expire soon, it is best to choose one with an expiration time greater than one year, because it is too close to the redemption period and many companies will actually pay back the money. If the redemption period is far away, there is still the possibility of forced redemption, and it may also become a demon debt.
Note: Whether is in the conversion period is not important for advanced arbitrage . Because many demon bonds have experienced crazy price increases even before they have reached the conversion period.
2. Historical data is stable enough.
Children who have been very well-behaved in history will most likely still be very well-behaved in the future. Bonds with very good historical data may continue to be so good in the future. Therefore, you can check the past history appropriately to see if there has been a big rise. If there is a big drop, it is basically certain that this is a monster bond and you can buy it according to your own situation.
Of course, the buying operation can be operated by software robots. There is no need to manually monitor the market. Set the conditions, buy when the price is met, and sell when the price is met, realizing artificial intelligence investment.
3. Whether it is a small-cap bond
Issuing convertible bonds is also an important form of corporate financing, but the size of the issuance also determines whether the bond is easily exceeded. If the market is relatively small, for example, only 200 million yuan in size, with a large amount of capital and buying tens of millions, the price can be raised.
Therefore, in terms of choice, you can choose one with a remaining scale of less than 500 million. With such a scale, it is easier to be speculated by hot money, the price is easier to rise, and it is easier for investors to make money.
If it is a large-cap bond, tens of billions of issuances will be difficult to attract, and if the company itself does not raise the price, the six-year duration may be mediocre. This is not suitable for short-term arbitrageurs.
Return to calm, risks still exist
The truth is easy to understand, but in operation, it requires a certain amount of patience to screen.
Of course, some students saw the arbitrage technique and went to buy it directly, but ignored several restrictions. As a result, they were trapped, and they also lost money after redemption at maturity.
No matter how good the investment tool is, there are certain risks. When we are dazzled by the profits, can we return to calmness and look at arbitrage calmly again? This thing can indeed make money, but how much money can be made depends not only on technology, but also on human nature.
Human nature is always greedy. If you can not forget your original intention and do things according to the rules, you will definitely be able to earn a satisfactory income. If you have too much desire and too much greed, you may fall into trouble.
There are always risks. Our arbitrage skills only reduce the risks. If you make a profit, you will definitely gain a lot of money. If you lose, you will not lose much. Therefore, arbitrage not only involves tactics, but also strategies.
Think twice before you act, think again
If you are new to the investment market, convertible bonds are the most suitable investment tool. For example, if you only have a few thousand yuan of capital in your account, or even only tens of thousands of yuan, convertible bonds You can earn your first pot of gold through arbitrage.
If you are an experienced investor, you may not like the income from convertible bonds, and prefer stocks and funds. Of course, if you are also interested in arbitrage, you may also be attracted by the excellence of convertible bonds. After all, No one feels that making money has nothing to do with them.
The stock market is risky, so you need to be cautious when entering the market. Anyone should think twice before investing.
thinks about whether the money invested is idle funds;
thinks about whether the money invested can withstand all losses;
thinks about the rate of return that can be earned from the money invested.
Whatever you do, if you think twice before you act, there will be good results. If you rush into the stock market, apart from making some money by luck, you will only lose money.
If you don’t have much capital, you might as well try convertible bond arbitrage. Investors can sleep peacefully and have their own listed companies working for you.
