What are the ways to leverage investment in bonds?

There are three main ways to invest in leveraged bonds: one is to buy at the time of issuance, the second is to directly purchase the leveraged bond after listing, and the third is to sell the preferred share after the spin-off.

Investors need to consider the following four factors when investing in leveraged bonds:

1. Investment type.

There are pure debt products and hybrid debt products that participate in the first investment, and the first category of hybrid debt products with an investment of no more than 20% is also highly volatile. Pure debt products are mainly affected by the bond market, and if the proportion of convertible bonds held is high, it will also increase significantly in a bull market. Different bond varieties with a favorable bond market environment have different types of bonds, and the performance of bond types is also different.

Therefore, when choosing a leveraged bond base, it is advisable to choose financial bonds, treasury bonds, and high-grade credit bonds with a higher leveraged bond base in an economic environment with poor economy and low inflation. When the economy improves, you can choose medium and low-grade credit bonds and convertible bonds to allocate more leveraged bonds.

2. Leverage factor.

Different from the leveraged stock base, the leveraged bond base leverage includes the leverage of the parent ** investment bond, and the net value leverage brought by the financing of A shares, which together are called comprehensive leverage. Generally speaking, the higher the comprehensive leverage, the higher the leveraged bond base, the more excess returns it obtains, and the higher the risk it faces.

3. The level of discount and premium rate.

When the discount rate is high, it provides a higher safety cushion for investors. Conversely, when the premium rate is high, the risk is relatively high. Due to the different designs, investors should also refer to factors such as whether there is a maturity date, ** management level and liquidity when looking at the discount premium rate.

4.Liquidity.

The level of liquidity directly determines whether the selected **** fully reflects the trend of the bond market and investors' expectations, and whether it can be bought and sold smoothly. The low liquidity of the **** is susceptible to small amounts of money, and the trend logic is even contrary to the value changes and bond market trends, and it is difficult to judge the future trend of investing in such **. At the same time, when buying and selling such **, it is difficult to find a counterparty, and it is easy to miss the opportunity to buy and sell.

The key to check the level of liquidity is to look at the daily trading volume and turnover, generally speaking, the liquidity of the market with more shares is higher.

What are the ways to leverage investment in bonds?Investment method: There are three main ways to invest in leveraged bonds, one is to buy at the time of issuance, the second is to directly **leveraged bonds** after listing, and the third is to sell the preferred share after listing.

Different leveraged bonds** are issued. Some leveraged bonds** are issued separately for two types of shares, and such products can be purchased directly when they are issued, such as Tianli B, Huli B, etc.; Some can only subscribe to the parent **, such a product must subscribe to the parent **, and then sell the preferred share after the listing to achieve only holding leveraged bonds**, such as Dolly Enterprising, Convertible Bond B, Bank of China Mutual Benefit B and other products. After listing, the way to directly **leveraged bonds** is relatively simple, 30 of the 34 leveraged bonds** can be like this**, but the trading volume of some products is very low, and even the transaction volume is less than 100,000 yuan a week, and it is difficult for investors to invest in such products.

Among the leveraged bonds**, the most liquid products are Yuansheng B, Tianli B, Fengli B, Juli B and Baoli B, which are liquid enough to meet the daily trading needs of investors. When buying and selling leveraged bonds**, you can't just look at the discount, for products with extremely inactive trading volume, even if the discount is more than 5%, it is best not to intervene, because when investors need to sell, they may also need a large discount to close due to insufficient liquidity. The third way is to subscribe to the parent **, split into two types of shares, leverage and preferential, and then sell the preferred shares.

This investment method is mainly suitable for two types of leveraged bonds with a comprehensive premium of shares**, although the investment is troublesome, but there can be a certain arbitrage space, and leveraged bonds can be bought at a lower price**, at present, only those leveraged bonds with no fixed term ** can be suitable for this investment method, including Dolly Enterprising, Convertible Bond B, Bank of China Mutual Benefit B, Zhonghai Huifeng B and other products.

For example, if a bond base has 200 million yuan, buys bonds worth 180 million, and buys 120 million bonds through mortgage bonds, the leverage ratio of the bonds** is 150%. The calculation process is that this bond base has made an investment of 100 million yuan with 200 million assets, so the leverage ratio is 3 2 = 150%.

The leverage ratio of bonds** is caused by the repurchase of bonds, which is a way to mortgage the bonds that have been purchased in your hands to the interbank or exchange, sign a repurchase agreement, and borrow funds.

Bond repurchase refers to the transaction behavior in which the two parties to the bond transaction agree in a contractual way to repurchase the bond again from the "buyer" (the reverse repo party) to the "buyer" (reverse repo party) at the agreed ** (principal and interest calculated according to the agreed repurchase rate) at a certain date in the future.

From the perspective of the transaction sponsor, any transaction in which the bonds are pledged and the funds borrowed are called bond repurchases; Any transaction that actively lends funds to obtain bond pledge is called reverse repo.

Bond**. The leverage ratio is caused by the repurchase of bonds, which is a way to mortgage the bonds that have been purchased in their hands to the interbank or exchange, sign a repurchase agreement, and borrow funds. Borrow a little bit of purple leaf.

Example of a squire: For example, a debt base.

If you buy $200 million worth of bonds worth $180 million, and you buy $120 million of bonds through mortgage bonds, the leverage ratio of the bonds** is 150%. The calculation process is that this bond base has made an investment of 100 million yuan with 200 million assets, so the leverage ratio is 3 2 = 150%.

Market capitalization as a ratio of net asset value.

The market capitalization of bonds as a ratio of ** net asset value.

Bank deposits.

In the A** market, the leverage ratio of margin trading is determined by the **company@shen. Silver. Plan. Outline.

According to the investor's credit status, collateral value, market conditions and its own financial arrangements and other factors, the maximum amount of funds or ** that can be invested by the investor will be granted. The credit ratio will be different for each brokerage. Leverage ratio of margin trading = total investor's basic investment funds divided by the total funds actually raised by the investor multiplied by 100%.

Among them, the total amount of the investor's basic investment is the value of the collateral.

In general, collateral includes funds in the trading account, bonds, bonds, etc. When an investor uses cash as collateral as collateral, the full amount of the margin can be included in the margin amount. If ** is used as collateral margin, the market value or net value of ** shall be specified by the exchange

The maximum conversion rate of government bonds shall not exceed 95%; Exchange-traded open-ended indices** with a maximum conversion rate of 90%; The conversion rate of other listed **investments** and bonds shall not exceed 80%; The conversion rate of the constituent stocks of the SZSE 100 Index and the constituent stocks of the SSE 180 Index** shall not exceed 70%, and the conversion rate of other ** shall not exceed 65%, while the conversion rate of ST** shall not exceed 0%.

Usually, the company will adjust the investor's credit line in a timely manner according to the changes in the investor's assets; Investors can also apply for an increase or decrease in the credit line according to their own needs.

Looking at the 2nd quarter report of each bond** can guide the leverage ratio. For example, if a bond base has 200 million yuan, buys bonds worth 180 million, and buys 120 million bonds through mortgage bonds, the leverage ratio of the bond** is 150%.

How is bond leverage calculated? Leveraged bonds** are the main type of leverage**. It is the one that amplifies the rise and fall of the parent company.

At present, the leveraged indices in China's ** market are all aggressive Class B shares of graded bonds**. This is a high-risk, high-return variety with leverage, and in a certain range, this part of the share enjoys a certain amount of leveraged income. They cannot be bought and sold through banks, but are listed and traded like ordinary **, and investors who have **A-share accounts or ** accounts can buy them through brokerage channels.

The leverage of bond investment is due to the fact that the bonds are being repurchased, and the bond repurchase is a way to mortgage the bonds that have been purchased in one's hands to the interbank or exchange, sign a repurchase agreement, and borrow hidden funds.

Leveraged investment refers to the use of the principle of leverage, that is, the use of a small amount of money to invest several times the original amount.

Leverage. (Tier 1 capital.

Tier 1 capital deductions) Adjusted balance of on- and off-balance sheet assets * 100%: Adjusted balance of assets on and off the balance sheet = Adjusted balance of assets on the balance sheet + Adjusted balance of assets on balance sheet - Tier 1 capital deductions.

The main advantages of introducing leverage as a complementary means of capital regulation are:

First, it reflects the role of real money** contributed by shareholders to protect depositors and resist risks, which is conducive to maintaining the minimum capital adequacy level of the bank and ensuring that the bank has a certain level of high-quality capital (common shares and retained profits).

Second, it can avoid the complexity of the weighted risk capital adequacy ratio and reduce the space for capital arbitrage. This financial crisis.

The lessons show that under the framework of the New Capital Agreement, if commercial banks take advantage of the complexity of the New Capital Agreement for regulatory arbitrage, it will seriously affect the capital level of banks. The data shows that some banks' core capital adequacy ratios and leverage ratios have diverged.