Is there any difference between Convertible Bond A and AA

Differences: Credit ratings of A+ and AA- for convertible bonds.

It's different, A+ is the lowest rating, and AA- is one level higher than A+. The rating is decreasing from AAA to A+, with the higher the rating, the higher the rank. The main thing is to rate the company's ability to repay debts, the larger the company, the more stable the profit, the higher the rating, bad debts.

The less likely; The smaller the company, the more volatile the earnings, and the lower the rating, the more likely the company is to have bad debts. Rating agencies have five ratings on convertible bonds. Guojin Commission Treasure is the first batch of "1+1+1" Internet service products in the industry, providing convenient trading, financial management and investment advisory.

Convertible bonds generally refer to convertible bonds.

It is a bond in which the bondholder can convert the bond into the company's ordinary ** according to the agreement at the time of issuance. Convertible bonds are traded on T+0, and the specific trading operations are similar to those of **, with entrustment, trading, custody, transfer of custody, ** disclosure, and trading time referring to A shares.

Apply for convertible bonds. When purchasing, enter the **, **, quantity, etc. of the convertible bond, and finally confirm it. Convertible bonds have certain elements, such as conversion ratio or conversion**; redemption terms and buy-back terms; Expiration date and conversion period; Interest rate or dividend yield.

Conversion ** Amendment Terms, etc. Conversion Ratio = Face Value of Convertible Bonds Conversion**, Conversion ** = Face Value of Convertible Bonds Conversion Ratio. Convertible bond investment has certain advantages, such as the current income of convertible bonds is higher than that of ordinary stock dividends; Convertible bonds are subordinate credit bonds, which have the right of priority to repay than **; Finally, convertible bonds allow investors to obtain the right to a minimum return, and even when it loses its conversion meaning, it will still have a fixed interest income.

Since its establishment, IFC** has strictly abided by various laws and regulations.

Continuously improve the corporate governance structure, establish a relatively sound internal control system, and always adhere to compliance management and sound operation; Corporate Compliance & Risk Management.

The overall situation and market competitiveness are at the leading level in the industry, and it has been on the Shanghai Stock Exchange for 5 consecutive years.

The information disclosure evaluation of listed companies has been rated A, and it has been highly praised in the same industry.

Ratings are different. The rating given by the rating agency according to the company's situation is divided into AAA, AA+, AA, AA-, A+.

It is mainly to rate the company's ability to repay debts, the larger the company, the more stable the profit, the higher the rating, bad debts.

The less likely; The smaller the company, the more volatile the earnings, and the lower the rating, the more likely the company is to have bad debts.

Among them, the rating is decreasing from AAA to A+, and the higher the rating, the higher the rank. The higher the rating, the stronger the company's strength and default risk.

The lower. In addition, the credit rating of convertible bonds.

It will directly lead to the different nature of the funds involved, because many bonds** or fixed income** have access principles for the credit rating of convertible bonds. The main holders of high-rated convertible bonds are various types of institutions, so the performance of convertible bonds** is also as stable as Mount Tai.

Rating Procedure: In general, credit rating mainly includes the following procedures:

1. Accept the commission. This includes making an appointment for evaluation, formally accepting commissions, and paying grading fees.

2. Preliminary preparation. Including the transfer of data, data collation, the formation of an evaluation project team, the determination of the rating scheme, etc.

3. On-site research. According to the requirements of the field investigation system, the evaluation project team will go deep into the site to understand and verify the situation of the evaluated object.

4. Analysis and argumentation. The assessment project team collects, sorts out and analyzes the collected information to form a preliminary credit rating report, which is submitted to the credit rating review committee for review after review.

5. Expert review. Including review preparation, expert review, determination of credit rating, issuance of "credit rating.

Notice. 6. Information release. Issue a "Credit Rating Certificate" to the rated object to inform the rating results.

7. Follow-up monitoring. During the validity period of the credit rating, the evaluation project team collects the financial information of the rated object on a regular or irregular basis, pays attention to the changes related to the rated object, and establishes a regular contact, communication and return visit work system.

The above content refers to Encyclopedia - Credit Rating Agency.

There are 3 levels of bond ratings, and 9 grades below the 3 ratings. Specifically:

Grade: (1) AAA grade is the highest level. The ability to repay debts is extremely strong, and the risk of default is extremely low.

2) AA level is advanced. The ability to repay debts is very strong, and the risk of default is low.

3) A level is upper intermediate. The ability to repay debts is strong, and the risk of default is low.

Grade: (1) BBB grade is intermediate. The ability to repay debts is average, and the risk of default is average.

2) BB grade is lower intermediate level. The ability to repay debts is weak, and the risk of default is high.

3) Grade B is speculative. The ability to repay debts is more dependent on the economic environment, and the risk of default is high.

Grade: (1) CCC grade is fully speculative grade. The ability to repay debts is extremely dependent on the economic environment, and the risk of default is extremely high.

2) CC grade is the maximum speculative grade. There is basically no guarantee of debt repayment.

3) Grade C is the lowest. There is no guarantee of repayment of debts.

Extended Information] The difference between bond conversion and bond issuance:

1.A convertible bond is a type of bond that can be converted into a bond issuer and usually has a lower coupon rate. Bond issuance refers to the issuance of bonds by the company in accordance with legal procedures, and it is agreed to repay the principal and interest within a certain period of time.

2.The issuance of bonds shall be subject to repayment of principal and interest within a certain period of time in accordance with the agreed conditions, and the repayment of principal and interest shall be completed and the issuance of bonds shall be completed; If the convertible bond issuance is converted into **, its bond issuance characteristics are lost, and the ** characteristics are formed.

3.General bond issuance refers to the act of the issuer issuing to investors in accordance with legal procedures and agreeing to repay principal and interest within a period of more than one year. The issuance of convertible corporate bonds refers to the issuance of bonds issued by the issuer to investors in accordance with legal procedures that can be converted into shares within a certain period of time according to the agreed conditions.

4.A convertible bond is a type of bond that can be converted into a bond issuer and usually has a lower coupon rate. Essentially, a convertible bond is an option attached to the issuance of a bond that allows the purchaser to convert the bond he or she purchases into a designated company** within a specified time frame.

5.Bond is a kind of financial contract, which is issued to investors when financial institutions, industrial and commercial enterprises, etc. directly borrow from the society to raise funds, and at the same time promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The essence of a bond is a certificate of debt, which has the force of law.

The bond purchaser or investor and the issuer are in a creditor-debt relationship, with the bond issuer being the debtor and the investor (bond buyer) being the creditor.

Convertible bonds, debt + equity financing, can be converted into the company's ** in the future, so the issuance interest rate is lower, and the annual interest rate is usually at present, and the bonds that have not been converted need to be repaid at maturity;

Bond issuance, debt financing, ordinary bonds issued by the company, can only repay the principal and interest at maturity, and the interest rate is usually higher than the interest rate of bank deposits and treasury bonds in the same period.

There are five ratings for convertible bonds. It is divided into AAA, AA+, AA, AA-, A+, and the rating given by the rating agency according to the company's situation.

The lower. **Generally not too concerned about the rating of convertible bonds, but institutional investors.

You'll care a lot.

Extended information: Institutional investors favor high-rated convertible bonds, and there are large issuance scale and large market capacity of high-rated convertible bonds.

Some institutional investors will require ratings when designing investment strategies.

Investing in high-rated convertible bonds is also in line with the manager's mentality of "not seeking merit, but seeking no fault". In particular, AAA-rated convertible bonds are allocated by large funds, so the premium rate of AAA-rated convertible bonds in the general market.

It will be relatively high.

There has been no default on convertible bonds so far, and the risk of default is extremely low. In the event of default, in accordance with the current practice of bond default, priority will be given to ensuring the vertical payment of the key of the first grade, which is Chinese characteristics.

Convertible bonds are all over a period of 6 years. Different convertible bonds have different interest rates, and even convertible bonds of the same rating will have different interest rates.

The holder can convert the convertible bonds with a face value of 100 into the corresponding listed company's ** according to the draft transfer price. At the time of issuance, a conversion price will be determined, which shall not be lower than the average trading price of the previous 20 trading days and the average trading price of the previous trading day. During the duration of the convertible bond, if there is a dividend and a share gift, the conversion price will also be automatically lowered accordingly.

During the equity conversion period, the convertible bonds can enter the equity conversion period before they can be converted into medium and permeable shares. Convertible bonds are generally converted into equity 6 months after issuance. Convertible bonds that have not entered the conversion period, because they cannot be converted, all some convertible bonds will have a large negative premium, such as the negative premium of the British Union convertible bonds.

Therefore, the transfer of shares can only be carried out when entering the transfer period.

Bond A: Bond type A **, where the letter A represents the charge type of ** is the front-end fee, that is, the fee is charged at the time of subscription, in the operating fee.

Management fees, custody fees, but no sales service fees.

Bond C: Bond type C **, where the letter C represents that the ** does not charge subscription fees, and only accrues management fees, custody fees and sales service fees on a daily basis during the holding period.

Under normal circumstances, the operating fee rate of Class A** is relatively low, but the redemption threshold is relatively high, and everyone is encouraged to hold it for a long time, and the investment cycle is more than 2 years. There is no subscription fee for Class C**, and the redemption threshold is usually relatively low, which is mainly to allow investors to invest flexibly and facilitate the operation of the medium-sized **.

Extended Materials

Although there are many types of bonds, they all contain some basic elements in terms of content. These elements refer to the basic content that must be set out on the bonds issued, which are the main agreements that clarify the rights and obligations of creditors and debtors, including:

1 Denomination of the bond.

The par value of a bond refers to the par value of the bond, which is the principal amount that the issuer should repay to the bondholder after the maturity of the bond, and is also the basis for calculating the interest paid by the enterprise to the bondholder on time. The face value of the bond is not necessarily consistent with the actual issuance of the bond, the issuance ** is greater than the face value is called premium issuance, less than the face value is called discount issuance, and the equivalent issuance is called parity issuance.

2 Repayment Period.

Bond repayment period refers to corporate bonds.

The term for repayment of the principal amount of the bond is the time interval between the issue of the bond and the maturity date. The company should determine the corporate bonds based on its own capital turnover status and various influencing factors of the external capital market.

repayment period. 3 Interest Payment Period.

The interest payment period of a bond refers to the time when the interest is paid after the bond is issued. It can be a lump sum payment due or a one-year, semi-annual or three-month payment. Time value in consideration of money.

and inflation, the interest payment period has a significant impact on the real return of bond investors. The interest on a bond with a lump sum payment at maturity is usually calculated at simple interest; For bonds with interest paid in instalments during the year, the interest is compounded.

4 Coupon rate.

The coupon rate of a bond refers to the ratio of the interest of the bond to the face value of the bond, which is the calculation standard for the remuneration that the issuer promises to pay to the bondholder in a certain period of time. The determination of the coupon rate of bonds is mainly affected by factors such as the bank interest rate, the credit status of the issuer, the repayment period and the method of calculating the interest, as well as the supply and demand of funds in the capital market at that time.

5 Name of Issuer.

The name of the issuer indicates the main key of the bond, which provides a basis for the creditor to recover the principal and interest when due.

The above elements are the basic elements of the bond face, but not all of them are printed on the face of the bond at the time of issuance, for example, in many cases, the bond issuer announces the maturity and interest rate of the bond to the public in the form of announcements or regulations.

There are three differences between bonds C and A:

1) The amount of investment in the state mausoleum is different:

Some bond types** stipulate that Class A of more than 5 million investment only needs to pay a subscription fee of 1,000 (subscription fee), which is the lowest cost.

2) The holding period is different

If you are sure that it is a short-term investment, such as less than 1-2 years, it is not cost-effective to choose Class C bonds for more than 2 years; If it is determined that it is more than 3 years, you can choose Class B, because the fee for Class B of ChinaAMC Bond for 2-3 years is only yes, and the longer it is, the less; If you don't have any judgment on the investment period, you can consider the Class A front-end fee.

3) The charging standard is different:

For the three categories of ABC, Class A generally represents the front-end fee, Class B represents the back-end fee, and Class C has no subscription fee, that is, there is no handling fee for both the front-end and the back-end.

Class A and Class B bonds**, generally Class A has a subscription fee, including front-end and back-end, while Class B bonds do not have any subscription fee. That is to say, Class A and Class B in the three categories of ABC are equivalent to Class A in the two categories of A and B, and are the front-end or back-end subscription fee**, while the Class C ** in the three categories of A, B and C is equivalent to Class B ** in the two categories of A and B, and there is no subscription fee.