What are the risks of convertible bonds? Are convertible bonds risky?

The risks of investing in convertible bonds are:

1. There is a risk of stock price fluctuations when investing in convertible bonds.

2. Risk of interest loss. When the stock price is converted to a convertible position, the convertible bond investor is forced to become a bond investor. The interest rate of convertible bonds is generally lower than the interest rate of bonds of the same grade, so investors will face interest losses.

3. Risk of early redemption. Many convertible bonds stipulate that the issuer will redeem the bond with a certain ** after a period of issuance, and early redemption limits the high return of investors.

4. Investment in convertible bonds faces the risk of forced conversion.

Before making any investment, you should ensure that you fully understand the investment nature and risks involved in the product, and carefully evaluate the product in detail before making your own judgment on whether to participate in the transaction.

Convertible bonds are subject to the following risks:

1. Investors in convertible bonds bear the risk of stock price fluctuations.

2. Risk of interest loss.

3. Risk of early redemption.

4. Forced conversion risk.

The risks of convertible bonds mainly include: the risk of forced redemption, the risk of stock price fluctuations, and the risk of forced conversion, which is one of the problems that most investors cannot ignore. To handle convertible bonds, we recommend Guojin**, and there are 6 special services:

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If you want to reduce the risk of convertible bonds, you can find varieties with low premium rates, low premium rates, and the equity of convertible bonds is very strong, if the convertible bonds are very high, then if the underlying stock is more, the convertible bonds will also be more, but if the convertible bonds are close to 100 yuan or less than 100 yuan, then the debt of the convertible bonds will play a protective role. You can also directly find the lowest varieties. Generally speaking, listed companies want to convert convertible bonds into equity, and most of them will lower the conversion price if the premium is too high, so that the lowest one will have a chance.

Another is to find varieties with high yields. It is indeed a simple and easy way to find the lowest price directly, but after all, the maturity of each convertible bond is different, and the interest during the period is also different.

If you want to know more about convertible bonds, we recommend consulting IFC**. IFC** currently holds Guojin ** Co., Ltd., IFC Dingxing Investment, IFC Innovation Investment, IFC State Street Investment Services, and IFC Financial Holdings (Hong Kong). Up to now, the company has 8 branches and 68 first-class business departments, distributed in important central cities in 23 provinces (municipalities and autonomous regions) across the country, with strong strength and trustworthiness.

Hello, compared with other investment varieties, the investment risk of convertible bonds is relatively low. However, as a special investment tool, the following investment risks of convertible bonds still require special attention from investors:

1. The risk of fluctuation of the underlying stock**. There is a positive linkage between the convertible bond and the market, and when the market is in the market, the convertible bond or even falls below the par price within a certain period of time also occurs from time to time. Although it does not affect the maturity income of convertible bonds, the underlying stock will increase the holding risk of convertible bonds and the time cost of holding convertible bonds.

2. Risk of interest loss. Although most convertible bonds can eventually be converted into shares, in practice, there are special cases where the majority shareholder repays the money when it expires. Especially when the company's stock price has been **, the conversion price is higher than the underlying stock**, most investors are reluctant to transfer shares, resulting in the listed company facing huge debt repayment pressure in the short term, and the final repayment interest rate may not necessarily reach the level of time deposits, and the high interest opportunity cost of investors is easy to face challenges.

3. Risk of early redemption. When the issuer of convertible bonds issues convertible bonds, it will be clear that the bonds will be redeemed under certain conditions, and the redemption of bonds often limits the upper limit of investors' yields, which is easy to cause losses in investors' opportunity costs.

In addition, there are other risk factors such as interest rate risk and issuer default risk when investing in convertible bonds.

Investors investing in convertible bonds generally hope to enjoy the potential benefits brought by the underlying stock, so the choice of issuer and issuance timing is particularly important in investment. Investors can analyze the issuer's fundamentals to determine whether there is actual performance support, pay attention to the intrinsic value of the company, and pay attention to the issuer's credit rating to grasp the best investment opportunity.

Since convertible bonds have the characteristics of bonds, ** and options, there are many terms and complex structures, investors should avoid blind investment without in-depth research on the product. In addition, investors are advised to pay special attention to the specific terms of convertible bonds, especially the coupon rate, redemption, resale, compulsory share conversion and other clauses in the prospectus, so as to ensure that the investment strategy and related operations are based on a full understanding of the rules and maintain a rational investment philosophy.

In case of opening an account privately.

The first is the risk of breakage after the listing of new bonds。For example, the subscription price of your convertible bond is 100 yuan, and it falls below 100 yuan after listing. Well, from the point of view of account equity, you are losing money.

Many training institutions in the market advertise: "Convertible bonds guarantee 100% capital protection". Actually, it's good to look at this kind of propaganda.

In addition, if you give up the purchase of new debt after winning the bidThere will be a penalty for liquidation. If the applicant fails to pay in full after winning the lottery three times in a row within 12 consecutive months, he shall not participate in the subscription of convertible bonds within six months.

A few key points to pay attention to when playing new debts are as follows:

1) Remember that the new bond was purchased on T day and will be signed in the result notification on T day.

2) The corresponding funds should be reserved in the account in advance, because if the purchase is made, the payment will be made back, which will affect the subsequent purchase. In 3 consecutive 12 months, there were no payments made. If you give up the subscription, you will not be able to participate in the subscription of convertible bonds, etc.

Within 6 months from the next day, and the losses will be significant. Moreover, there will be detailed rules for the subscription of convertible bonds.

3) As early as September 8, 2017, the China Securities Regulatory Commission (CSRC) adjusted the subscription method of convertible bonds to debt subscription, that is, to subscribe first, sign and pay later.

4) Purchase time: 8:45-15:00.

What do professional investors tell you: what are the risk factors of convertible bonds? These five points must be remembered! Forced redemptions, loss of interest, share transfers, company bankruptcy, **volatility, etc.!

What is a convertible bond and the risks of a convertible bond.

The reasons why it is not advisable to play with convertible bonds are as follows.

1. Convertible bonds are not principal-guaranteed products, and convertible bonds are relatively difficult to value, making transactions difficult.

2. There is no limit on the rise and fall of convertible bonds, that is, they can be infinitely **and**, which increases the risk of trading.

3. Convertible bonds are not suitable for long-term holding, the interest rate of convertible bonds themselves is not high, investors mainly earn bid-ask spreads, and long-term holding may trigger the risk of forced redemption, and the probability of losses caused by compulsory redemption of convertible bonds is relatively large.

There are three main risks associated with convertible bond investment:

1) **** risk.

Risk**:****The risk is mainly to buy convertible bonds when they are above 130 yuan, which may lead to losses, because convertible bonds above 130 yuan are basically equal to only**.

Solution: ** Buy at 100 yuan, at this time, the worst result is to hold the principal and interest at maturity. Except, of course, in the case of arbitrage.

2) Debt default risk.

Solution: Select the convertible bonds issued by listed companies with qualified financial status.

and 3) the risk of suspension or termination of listing.

Risk**: If the listed company that issued the convertible bond loses net profit for two consecutive years, the listing of the convertible bond will be suspended, and if the company still loses money in the third fiscal year, the convertible bond will be terminated.

Solution: Do not buy convertible bonds issued by listed companies that have suffered continuous losses.

Therefore, summing up the case of risk avoidance will form the three elements of arbitrage

1. Buy below 100 yuan; 2. Convertible bonds during the conversion period; 3. High-quality convertible bonds.

Element: Buy under 100 yuan

In case of the worst-case scenario, you can steadily obtain principal and interest, and the more you are less than 100 yuan, the more the future rate of return.

Assuming 1:90 yuan to buy and hold to maturity, the coupon rate is 5%, and the annualized return to maturity is: 5 90=, which is a steady profit.

Hypothesis 2: ** rises to $130, and the return is (130-90).

Elements and convertible bonds during the conversion period.

15 out of 30 consecutive transactions ** In the case of 130 yuan, the listed company can be forced to redeem, so the convertible bond during the conversion period is **easier**, on the whole, the shorter the remaining life of the convertible bond, the less time for the listed company to consider redemption, so the shorter the remaining life, the better.

Element. 3. Buy high-quality convertible bonds.

This high quality refers to the convertible bonds issued by ordinary companies, which can repay their debts, but the repayment pressure is more likely to push the company forward and force investors to convert their shares.

The reasons for not buying good companies and junk company convertible bonds are as follows:

Excellent listed companies, with a large number of cash, tend to pay low-interest convertible bonds at maturity.

The possibility of a junk company defaulting on its debt is also not considered.

Convertible bonds** risk: 1. Compared with ordinary bonds**, the convertible bond base fluctuates significantly. At present, there are a total of 5 convertible bond bases, all of which were established after January 2010, such bond bases are relatively high, basically above 10%, and are more active in the allocation of convertible bonds, all of which are above 90%, with a maximum of more than 10%, the risk-return level of convertible bonds is higher than that of ordinary bonds, coupled with the positive allocation of **, the return risk level of convertible bonds is significantly higher than that of pure bonds and primary bonds, and also higher than that of secondary bonds.

2. The indebtedness of convertible bonds does not mean that they are free of risk. The debt of convertible bonds will only be highlighted when the conversion of shares ** is much higher than the stock price, in the stage of conversion ** and the stock price is relatively close, the convertible bonds show the same fluctuations as the underlying stock, if the market adjusts at this time, the range of convertible bonds ** will also be very large, and with the deepening of the decline, the convertible bond debt will gradually reflect, its decline will slow down, from the data from January 200 to the end of January 200, the CSI 300 fell by 1%, and the convertible bond index fell by 44%. Therefore, the convertible bond base is not entirely a stable asset, and its volatility and downside risks are sometimes large.

Third, the play of the relative advantages of the convertible bond base depends on the market style. From the perspective of convertible bonds, there are currently three or two convertible bonds in China, of which the underlying stocks are the first of the small and medium-sized boards, and the rest are basically the constituent stocks of the CSI 300 index, and the first centralized allocation is also a variety with a scale of more than one billion yuan. At the end of last year, the Shanghai and Shenzhen indices were adjusted, and the ChiNext ** case, the decline of the convertible bond base was significantly higher than that of the partial stock **, and in the case of obvious differences in market style, its advantages could not be reflected, but from May to January 2012, the market as a whole was in the adjustment stage, and the average decline of the partial stock ** was more than 10%, and the convertible bond base was only **2.

Bar 5%, since May this year, the stock index as a whole, the convertible bond base **13. 9% of lacquer, which is higher than the average return of the stock-biased type**. This year, the performance of the Qiyue stock index has been even more eye-catching.

First, the risk of breakage. What is a breakage, that is, after you buy it, the first day of listing **** is not less than 100 yuan, because many friends are waiting to sell new bonds on the first day of listing and make new money, but not all convertible bonds will exceed 100 yuan on the first day of listing.

2. Risk of default.

The essence of convertible bonds is still bonds, which simply means that listed companies issue bonds to borrow money from investors. If the company's capital chain is broken, the principal of the bond will be gone, let alone make a steady profit.

3. Transaction Risks. Convertible bonds can be sold on the same day, which is the so-called T+0 transaction, why A**.

It's T+1, mainly to ensure the best market.

stability to prevent excessive speculation. As a novice investor, we recommend that you start to understand convertible bonds from the beginning of the IPO session, and do not participate in the secondary market first.

For example, when you see that a convertible bond has risen so well, I will buy one to chase high, that is not right, there are many ways to play convertible bonds, and there are many institutions in it, when you have not yet eaten it, then learn first.