What is the difference between the compulsory redemption of convertible bonds and the conversion of

Since the conversion price of convertible bonds is determined in advance, while the share price of the underlying stock is not set in stone, in order to protect the interests of the issuer, convertible bonds generally have mandatory redemption clauses. In addition, during the conversion period, the holder of the convertible bond can follow his own wishes to convert shares, but during the convertible bond conversion period, if the company has at least 15 trading days in 30 consecutive trading days, the company has the right to redeem all or part of the convertible bonds that have not been converted into shares according to the face value of the convertible bonds plus the accrued interest of the current period. The resale of convertible bonds is a guarantee of security for investors and is an additional clause when issuing convertible bonds.

When convertible corporate bonds.

When the conversion value is much lower than the face value of the bond, the holder will not exercise the conversion right, and the investor can request the issuing company to recover the convertible corporate bond at the face value plus interest compensation according to certain conditions. In order to reduce investment risks and attract more investors, the issuing company usually sets this clause. It protects the interests of investors to a certain extent and is a way for investors to transfer risk to the issuing company.

Sellback is essentially a put right, a right given to investors, and investors can choose whether to exercise this right according to changes in the market.

The official website shall prevail.

Compulsory redemption is a measure taken by the issuer to urge the purchaser to exercise its rights as soon as possible in the case of rising or rising value of bonds, and the initiative lies with the seller.

Self-equity conversion is the buyer's own decision on the time and amount of bonds to be converted into ** (what proportion), and the buyer takes the initiative.

The first two are not sellbacks.

Resale means that the buyer has the right to require the seller to buy back the creditor's rights, and there are two distinctive characteristics: 1It is the purchaser who proposes to let the issuer buy back the bond, which is different from the mandatory redemption2

The purchaser's request is for the issuer to redeem the bond, not to exercise the option, which is different from a voluntary conversion.

What is the difference between the compulsory redemption of convertible bonds and the conversion of shares? There is a certain difference in what is resale, but I don't know much about the specific difference.

Influential.

Convertible bond is a kind of bond issued by the company in order to raise funds from the public, and investors who hold the bond can hold it to maturity, or convert it into shares and sell it in the secondary market, but there will also be some special circumstances that cause the convertible bonds held by investors to be forcibly redeemed.

Generally speaking, the compulsory redemption of convertible bonds will lead to the conversion of convertible bonds to investors who hold convertible bonds.

Convertible bonds will be forcibly redeemed if they are:

1. When the stock price of the convertible bonds of listed companies is higher than 130% of the conversion price for 15-20 consecutive days, it will be forcibly redeemed, which can prompt investors to carry out share conversion operations and reduce the risk of bubbles caused by investors' high prices.

2. When the underlying stock price of the convertible bonds of the listed company lasts for about 30 days and is lower than 70%-80% of the conversion price, the mandatory redemption is carried out, and the redemption price is generally between 101-103, which can protect the income of investors.

As follows:

1. Forced redemption is the right of the issuing company, and when the forced redemption clause is triggered, the company has the right to redeem the convertible bonds in the market, or it may not redeem them. Forced redemption generally occurs when the company's stock price is significantly **, in order to prevent investors from converting to more ** and diluting the shareholders' equity, so early redemption.

2. Resale is the right of investors, which can be resold or not. Buybacks generally occur when the company's stock price is sharply**, and the issuing company provides investors with an opportunity to stop losses in advance. Of course, when the bond matures, it is also possible to repay the principal and interest.

Introduce. Convertibility is a convertible bond.

Bondholders can convert bonds into ** on agreed terms. Conversion is an option that investors enjoy that is not available in ordinary bonds. Convertible bonds are expressly agreed at the time of issuance, and bondholders can convert the bonds into ordinary bonds of the company in accordance with 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**.

Convertible bonds are mandatory and belong to the rights of listed companies, which refers to the fact that the issuer of convertible bonds can redeem convertible bonds in advance in accordance with the provisions of the prospectus if certain conditions are met. The resale of convertible bonds is non-mandatory, belongs to the rights of investors, and is an additional clause when listed companies issue convertible bonds, the main purpose of which is to provide investors with a guarantee of security. Convertible bond ** company, specifically the national finance **, this company's wealth management products accurately match services.

Compulsory redemption of convertible bondsGenerally, if the listed company has at least 15 consecutive trading days for at least 15 trading days, it will trigger the compulsory redemption conditions of the listed company's convertible bonds. Convertible bond resaleGenerally, when the listed company** in the last two interest-bearing years for any 30 consecutive trading days is less than 70% of the current equity conversion**, the holder of the convertible bond has the right to sell back all or part of the convertible bond held by the issuer at the face value of the bond plus the current accrued interest**. When the convertible bond triggers the redemption clause, the investor can choose to sell back or not to sell back, and if it is not re-sold, it can wait for the bond to mature and repay the principal and interest.

If you want to know more about convertible bonds, we recommend consulting IFC**. Since its establishment, IFC** has strictly abided by various laws and regulations, continuously improved the corporate governance structure, established a relatively sound internal control system, and always adhered to compliance management and steady operation; The overall status and market competitiveness of the company's compliance and risk management are at the leading level in the industry, and it has been rated A in the information disclosure evaluation of listed companies on the Shanghai Stock Exchange for five consecutive years, and has been highly praised in the industry.

All listed convertible bonds have a "mandatory redemption clause". When this money is triggered, the listed company that issued the convertible bonds has the right to recover the remaining convertible bonds of the company in the Danxiang market with the established redemption**. For example, when the market ** of AB convertible bonds is located at 166 yuan, the listed company AB issued an announcement that two weeks later, it will be forced to redeem the AB convertible bonds that are still well contained with a redemption of 102 yuan**.

If the investor holding the AB convertible bond does not convert the convertible bond into the ** of AB company, nor does he sell the convertible bond in the secondary market, then after two weeks, if the market ** of the AB convertible bond is still 166 yuan, the investor will bear a net loss of 64 yuan per convertible bond unit when the redemption is triggered.

It refers to the operation of the issuer to make a mandatory redemption to the holder of the convertible bond according to a certain ** when the convertible bond triggers the early redemption condition, and the probability of the loss of the convertible bond is relatively high, and the investor can sell or convert shares in advance to avoid losses. Disperse.

It refers to the operation of compulsory redemption of convertible bonds by the issuer in accordance with a certain ** to sell convertible bonds and argue for compulsory redemption by someone when the convertible bond triggers the early redemption condition, and the probability of loss of the convertible bond is relatively large, and investors can sell or convert shares in advance to avoid losses.

Compulsory redemption is subject to certain conditions:

1. Convertible bonds must enter the equity conversion period, and cannot be forcibly redeemed without entering the equity conversion period;

2. When the underlying stock price of the convertible bond is higher than 130 for 15 to 20 consecutive days, it will be forcibly redeemed;

3. When the underlying stock price of the convertible bond lasts for about 30 days and is lower than 70 80 of the conversion price, it will be forcibly redeemed.

A convertible bond is a bond in which the bondholder can convert the bond into an ordinary bond of the company as agreed at the time of issuance. If the bondholder does not wish to convert, he or she can continue to hold the bonds until the maturity of the repayment period and receive the principal and interest, or liquidate them 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 to the issuer under certain conditions, and the issuer has the right to forcibly redeem the bonds under certain conditions.

I think that when the convertible bond reaches the resale period, you can choose to sell the convertible bond and wait for it to protect your interests.

Under normal circumstances, there will be an opportunity to sell back once a year, and you can also directly choose a company that can convert bonds.

At this time, we will enter the sell-off period, and then we must announce the resale during some sales periods, so that we will have the right to **.

The convertible bond should be redeemed during the buyback period, and if it is not redeemed, these convertible bonds will become **.

The compulsory redemption of convertible bonds does not have much impact on the stock price, the rise and fall is not determined by the convertible bonds, the rise and fall is determined by supply and demand, the amount of funds, policies, news and other factors, the compulsory redemption of convertible bonds refers to the mandatory redemption of convertible bonds to the holders of convertible bonds in accordance with a certain ** when the convertible bonds trigger the early redemption conditions, and the compulsory redemption of convertible bonds will cause the convertible bonds.

Conditions for compulsory redemption: Convertible bonds must enter the conversion period, and cannot be forcibly redeemed without entering the conversion period, when the underlying stock price of the convertible bond is higher than the conversion price of 130 for 15 20 consecutive days, it will be forcibly redeemed, and when the underlying price of the convertible bond lasts for about 30 days and is lower than the conversion price of 70 80, it will be forcibly redeemed.

Precautions for compulsory redemption of convertible bonds.

If the foreclosure clause is triggered, then it proves that the convertible bond** has been above 130 yuan for at least a period of time, with a face value of about 100**, and ** has risen to 130 yuan or more, and has made a lot of money, then the investor must be the winner.

After triggering the forced redemption, investors are generally faced with the following choices: sell the convertible bonds, make a profit and leave; Convert the convertible debt into ** and wait for **** to continue to bring income; Do nothing, wait for the listed company to redeem it according to 103 yuan or similar **. Obviously, most investors will choose the first two.

Redemption of convertible bonds: The company buys back the convertible bonds after maturity in accordance with the previous agreed terms. Generally, within five trading days after the expiration of the issued convertible bonds, the company will redeem 106% of the par value of the convertible bonds issued.

Investors can choose whether to redeem or convert shares based on the stock price at that time and where the stock price is located.

Convertible bonds are forced to be redeemed, and the hoop occurs during the trading period. General rule: the ** price for at least 15 of the 30 consecutive trading days.

Not less than 130% of the current conversion**.

This means that the stock price is much higher than the share transfer**, and the investor has made a profit, but there are still investors who are unwilling to transfer the shares, so the mandatory redemption mechanism is triggered. Investors can choose to sell 130 to a listed company, or they can earn 30% themselves. Assuming that the income of the convertible bond in the investor's hand has exceeded 30%, it is recommended to sell or convert to shares, otherwise it can only be redeemed at 106 yuan.