It is better to have a positive or negative convertible bond premium rate, and whether the convertib

Negative. According to the formula for calculating the conversion premium rate, when the conversion premium rate is negative, it means that the value of the convertible bond is lower than the conversion value, that is, the conversion price is lower than the positive stock price. From the perspective of convertible bonds, the value of convertible bonds with a negative premium rate is higher than that of a positive number, and the convertible bonds with a lower conversion premium rate will generally have a stronger ability to keep up with the underlying stocks, and the risk of the convertible bonds breaking after listing is also smaller.

Conversion premium rate = convertible bonds** Conversion value - 1;

Conversion value = Convertible bonds** Conversion price * Positive stock price;

The conversion price refers to the conversion of convertible corporate bonds into the payment per share, and the conversion price is usually determined at the time of the issuance of the convertible bonds, and generally does not change; The higher the conversion price, the smaller the number of convertible bonds** for the same amount, so the lower the conversion price is set for the same bond, the better it is for investors.

The stock price refers to the transaction, which is a relative concept to the value of the market, which is determined by the market and fluctuates in real time.

2. Investment is risky, and you need to be cautious when entering the market. Before making any investment, you should ensure that you fully understand the investment nature and risks involved in the product, understand and carefully evaluate the product in detail, and then judge whether to participate in the transaction by yourself, and do not invest blindly.

The formula for calculating the price conversion rate is: premium conversion rate = convertible bonds** equity conversion value - 1, equity conversion value = convertible bonds** stock price * positive stock price. As can be seen from the formula, if the premium rate of the new debt is negative, it means that the convertible bond** is lower than the equity value.

If the premium rate is higher, it means that the convertible bond** is overvalued, then the conversion is not cost-effective, and the negative premium rate means that the convertible bond** is undervalued, so the conversion is more cost-effective.

Extended Information] The convertible bond premium rate is also the conversion premium rate of the convertible bond.

Convertible bonds.

The premium can be understood as follows: the cost of buying a convertible bond and converting it into ** is higher than the cost of buying ** outright.

The premium rate of a convertible bond is the level of premium after an investor buys a convertible bond in the market** and compares the cost of the convertible bond to the premium cost of a direct purchase**. The premium interest rate level reflects the value of the warrants contained in the convertible bond. In general, the lower the premium of a convertible bond, the cheaper it is.

In the convertible bond market, the convertible premium rate is generally positive, because if the premium drops to 0, it means that investors can make almost risk-free arbitrage by buying convertible bonds, then converting, and then selling**.

A large ** will push up the convertible bonds**, causing the conversion premium, back to 0, so it is difficult for the conversion premium to fall below 0, after all, it is an irreversible operation. Therefore, in the secondary market.

Conversion operations are not common, generally only in the listed company initiates the compulsory redemption of the loan, or the convertible bond will make the investor mature, because the investor must choose between the conversion and the principal and interest, if the company's stock price is higher than the conversion**, the rational investor will choose to convert instead of return the principal and interest.

Of course, if the conversion premium is too high, there may be two reasons, one is that the company's stock price is too large and too far away from the stock price, although the ** of the convertible bond is not very high, and may even be lower than the face value, but the conversion premium is still very high, because the convertible bond reflects the nature of the bond, and it is not uncommon for the convertible premium to be high.

Due to the speculation of investors, the conversion premium will rise due to the convertible **, reflecting the speculation risk of the convertible bond, investors should pay attention to the risk of the convertible bond, not only will there be no risk in buying the convertible bond, but will also bear the orange risk of the return of the value of the convertible bond.

Yes, the lower the conversion premium, the better, because the higher the conversion premium, the greater the gap between the conversion bond and the underlying stock** and the conversion **, and the lower the conversion premium rate, the smaller the gap between the conversion bond and the underlying stock** and the conversion **.

To put it simply, the conversion premium rate of a convertible bond represents how closely the convertible bond is closely related to the stock price. The lower the premium rate, the closer the **** and the convertible bond**, and the more synchronized the fluctuations of the two are, the easier it is for investors to obtain high returns.

For example, a convertible bond with a face value of 100 yuan, the corresponding conversion of the underlying stock into shares** is 10 yuan, that is, a convertible bond can be exchanged for 10 shares. At this time, the underlying stock fell from 10 yuan to 5 yuan, and the convertible bond did not fall because of the bond attributes, it was still 100 yuan, and the premium rate was 100%. If you buy a convertible bond with a premium rate of 0 at the current price of 180 yuan, if the stock price is **20%, the convertible bond may also be **20%, and it must be used simultaneously.

Conversion premium rate.

The face value of convertible bonds is -1, and whether the conversion premium rate is high or low depends on whether the investor chooses to hold shares or choose to hold bonds:

For investors who want to continue to hold convertible bonds: the positive premium rate of convertible bonds is more appropriate, and the greater the positive premium rate of convertible bonds, the better.

For investors who are going to convert convertible bonds into **: it is more appropriate for the convertible bond premium rate to be negative, and the larger the negative conversion premium rate, the better, the negative premium rate means that the convertible bond ** is lower than the value of the convertible bond, and it will be more cost-effective to convert to ** at this time.

According to the formula of the convertible bond conversion premium rate, to calculate the conversion premium rate, the conversion value must first be calculated, and the formula is: the underlying stock of the convertible bond** The conversion price of the convertible bond is 100.

Extended information: Share transfer is a form of dividends of listed companies, which is taken from the capital reserve.

The method of transferring shares to increase dividends. Only the accounting account of the borrowing company is required to realize dividends through the conversion of shares.

Because of its simple operation and low cost, it is favored by listed companies.

Conversion of share capital. with bonus shares.

The difference. The conversion of share capital refers to the conversion of the company's capital reserve into share capital, which does not change the rights and interests of shareholders, but increases the size of the share capital, so the objective result is similar to that of bonus shares.

The essential difference between the conversion of share capital and the bonus share is that the bonus share comes from the company's annual after-tax profits, and only if the company has a surplus, can the bonus share be sent to the shareholders, while the conversion of share capital comes from the capital reserve, which can not be limited by the amount and time of the company's distributable profits in the current year, as long as the capital reserve on the company's books is reduced and the corresponding registered capital can be increased.

Therefore, in a strict sense, the conversion of share capital is not really a return on dividends to shareholders.

The realization of dividends through the transfer of shares only requires the accounting subjects of the borrowing company, which is favored by listed companies because of its simple operation and low cost. In addition, the conversion of shares to achieve the best income can achieve the purpose of tax avoidance in the active secondary market.

The effect is often better than cash dividends.

Convertible bonds.

It is a bond that the bondholder can convert into the company's ordinary ** according to the ** agreed at the time of issuance.

If the bondholder does not want to convert, they can continue to hold the bond until the repayment period expires to receive the principal and interest, or liquidate it in the liquid market**.

If the holder is optimistic about the potential of the bond issuer to increase its value, he or she can exercise the right to convert the bond into ** according to the predetermined conversion after the grace period, and the bond issuer shall not refuse.

The interest rate of the bond is generally lower than the interest rate of the bond of ordinary companies, and the issuance of convertible bonds by enterprises can reduce the cost of financing.

Holders of convertible bonds also have the right to sell the bonds back under certain conditions.

The right to the issuer, the issuer has the right to redeem the bond compulsorily under certain conditions.

Whether the premium rate of the convertible bond is high or low depends on the situation. When the premium rate of convertible bonds is positive, the convertible bonds** are higher than the value of the convertible shares, and it is more cost-effective to hold the bonds, while the convertible bonds** may be sold at a loss; When the premium rate is negative, the convertible bond** is lower than the conversion value, and the conversion will be more cost-effective.

Among the common financial instruments of ordinary investors, convertible bonds are more complex than ordinary bonds, and convertible bonds have both equity and debt properties, so they will lead to a lot of uncertainties, so they need to be operated with caution.

The premium rate of convertible bonds is positive, indicating that the value of convertible bonds** is higher than that of convertible shares, and it is generally considered that it is more cost-effective to hold bonds, while converting to ** selling may result in a loss. In the same way, when the premium rate is negative, it means that the value of the convertible bond is lower than that of the convertible bond, and it will be more cost-effective to exchange it for **, or the convertible bond, and then sell it to arbitrage profits.

Generally speaking, the premium rate should not be too high, the higher the conversion premium rate, the worse the equity performance, the more difficult it is for the convertible bonds, and the convertible bonds are not necessarily after the underlying shares. On the contrary, the lower the conversion price, the easier it is for the underlying stock to drive the convertible bond. Of course, this does not mean that when the conversion premium rate is negative, there must be investment value.

High. When the premium is high, it means that investors are generally optimistic about the market outlook. If there is a change in the adjustment or conversion of bonds (such as triggering the redemption clause), people's expectations for the future market of the convertible bonds will also change.

In this way, if the premium rate of a convertible bond is high, it may have to bear double pressure, due to the pressure of the underlying stock price being too low, and the pressure of the pre-premium rate being too high. Sometimes the superposition of double pressures can even cause the phenomenon that the single-day decline of convertible bonds is much greater than the decline of the underlying stock.

Estimating risk with reference to the premium rate avoids hindsight and guides the actual operation. Attention should be paid to negative conversion premiums, which tell us that risk-free arbitrage opportunities may soon arise. The premium rate is only an auxiliary indicator, and other methods are also used to make comprehensive judgments.

The convertible bond premium rate refers to the pure debt premium rate and the equity conversion premium rate

The premium ratio of pure debt indicates the extent to which the convertible bond price exceeds the value of pure debt, indicating the strength of debt. It is calculated by subtracting the value of the net debt from the conversion price, dividing it by the value of the net debt, and multiplying by 100%.

The current price of each convertible bond is more than 130 yuan, and the highest is Haihua convertible bond (125822), which has reached 389 yuan, and its pure debt premium rate is as high as 289%. **The lowest is Chengxing Convertible Bond (110078), which is calculated in yuan, and the premium rate of pure debt is not low. The fact that the overall premium of the convertible bonds is so high indicates that the debt nature of all the convertible bonds is very weak.

From this point of view, the risk contained in the convertible bond is almost the same as the risk of the underlying stock, and the unique debt protection function of the convertible bond no longer exists.

For friends who want to use ** to earn extra money, ** although the income is high but there is a high risk, although the security of the deposit bank is there, the interest is too little. Is there any investment target with relatively low risk and considerable returns? Yes, convertible bonds are worth your investment.

Today I will talk about what convertible bonds are and how to use them correctly. Before you start, you might as well get a wave of benefits first--the **list selected by the institution is freshly released, don't miss it when you pass by: [Top Secret] The **list recommended by the agency is leaked, and you can get it quickly within a limited time!!

2. How to buy and sell convertible bonds? How do I transfer shares?

a) How to buy and sell.

1. Participate in the issuance.

When you hold the corresponding ** of the bond, you can be eligible for preferential allotment; If you don't hold shares, you can only rely on subscription to make a new deal, and the condition is to win the lot. If you want to sell preferential allotment and subscribe for IPO, you need to wait until after the bond is listed.

2. Post-listing participation.

There is no difference with the ** trading operation, the same as the stock price, and the ** of the convertible bond is also changing from time to time, the difference is that there are 10 convertible bonds in 1 lot, and it follows the operation mode of T+0 trading, that is to say, investors can buy and sell at any time.

2) How to transfer shares.

The condition for the transfer of shares is during the transfer period. Generally speaking, the convertible bond conversion period traded in the market is generally from six months after the end of the issuance to the maturity date of the convertible bond, as long as the free conversion can be carried out on any trading day during the period.

3. What is the relationship between convertible bonds?

There is a strong correlation between the ** of convertible bonds and the stock price, if it is in a bull market, the ** of convertible bonds will rise with the situation, and it will fall together in a bear market. Especially compared with **, convertible bonds are less risky, after all, convertible bonds have the income of resale and bonds. If you want to invest in convertible bonds, you must also look at the trend of **, there is really not enough time to study a ** friend, just click this link to learn about it, enter what you want to know, and conduct in-depth analysis:

Free to test your current valuation position?

Is it better to have a high or low premium on convertible bonds.

Generally speaking, the lower the premium rate of new bonds, the better, which means that the risk of breaking after the listing of new bonds is smaller, indicating that the conversion price is higher than the underlying stock**, and the value of the later conversion is high. If the premium rate of new debt is higher than 10%, then investors should be cautious**. New bonds are newly issued convertible bonds, which can be held to maturity to obtain expected returns on principal and interest, and can also be held in the secondary market, just like other bond types.

Buying and selling bonds. However, convertible bonds can also be converted into listed companies under certain conditions, including the premium rate of conversion.

is one of the important indicators to consider the value of equity conversion and the risk of new debt breakage. The formula for calculating the conversion premium rate is: conversion premium rate = convertible bonds** conversion value -1, conversion value = convertible bonds** conversion price * positive stock price.

Extended Information:1Subscription of new bonds refers to the subscription of convertible bonds issued by listed companies.

or exchangeable bonds. Subscription of new bonds generally refers to the subscription of convertible bonds or exchangeable bonds issued by listed companies. The full name of convertible bonds is convertible corporate bonds.

Like other bonds, convertible bonds have a specified interest rate and maturity, but unlike ordinary bonds, convertible bonds can be converted into ** under certain conditions.

2.Hit new debt.

The debt in refers to the convertible debt, which is a kind of convertible debt. Issuing new bonds means subscribing to newly issued convertible bonds. Investors participate through **Account Filial Piety Spine Households, but are not required to hold**.

When subscribing, investors are selected by drawing lots, which is "winning the lot". There is no need to deposit the amount when subscribing, and the corresponding amount can be paid after winning the lot, which is almost no financial pressure for investors during the subscription period.

3.The denomination of convertible bonds is generally 100 yuan per lot, 1 lot is 10 lots, and 1 lot is 1 lot, that is, investors need to pay 1,000 yuan in 1 lot. Because of the large number of new bonds, the probability of winning the new debt is not high, or so, usually at most one or two lots, and the required funds are about 2,000 yuan, so you can choose to subscribe at the top of the grid when subscribing to improve the winning rate.

It takes about 20 days for the new bond to be listed, and the funds cannot be used during this time. Therefore, investors can open more ** accounts according to their own capital status, which can also improve the winning rate. Theoretically, there will be no loss in new bonds, but if the premium rate is too high, there is also a risk of falling below the issue price, and it is generally normal for new bonds to be within 5% of the premium rate.