What is the development of the convertible bond market this year? Why is Huaan launching convertible

Huaan** launched convertible bond products at this time, which is closely related to the rapid development momentum of the current convertible bond market, and can even be said to be very strategic. According to statistics, the current stock of the convertible bond market is 16 stocks with a total scale of 121.2 billion, a record high. The industry involves banking, petrochemical, steel, chemical, electric power, nonferrous metals, media, consumption, etc., and the industry distribution is diversified, and the scale is also large, medium and small.

The scale of the convertible bond market has greatly expanded from 10 billion yuan at the beginning of last year to the current scale of 100 billion, and it can be said that 2010 is a year of prosperity and development of the convertible bond market.

Objectively speaking, compared with the world's major mature markets, the domestic convertible bond market is relatively backward in development and is still in the early stage of growth. In the long run, with the further development of China's capital market, especially the adjustment of corporate financing structure, convertible bonds, as a financing tool with both debt and equity properties, will surely develop and grow steadily.

At present, there are 10 companies with a scale of 100 million yuan in convertible bond issuance plans. It is estimated that by the end of 2011, the market size of convertible bonds will reach nearly 150 billion yuan, an increase of about 50%, and such a large expansion will provide investors with more investment targets.

Convertible bonds are generally more suitable for the ** market.

Now is a good time.

You may not know that the issuance of convertible bonds has high requirements for the cash flow and distributable profits of listed companies.

At present, the biggest impact on the convertible bond market is the reform of equity splitting.

The investment income of some convertible bonds is higher than that of treasury bonds and corporate bonds, and the investment value is revealed. If the option value of the convertible bond is not considered and it is regarded as pure debt, the yield to maturity of each product can be calculated, and the current yield level of some varieties has exceeded the level of treasury bonds and even corporate bonds of the same maturity. While the Treasury market continues to reach new highs, yields have fallen to levels seen in early 2002; The interest rate of corporate bonds with a three-year maturity is about 3%, so holding convertible bonds can obtain a higher risk-free return than government bonds or corporate bonds.

Convertible bonds have the characteristics of multiple trading varieties such as equity and debt, and if the long-term growth potential of convertible bonds and the advantages of relatively stable returns of debt can be flexibly controlled, it will be conducive to the diversification of portfolio risks and the improvement of overall returns.

It is said that the situation may improve in the second half of the year.

Briefly, a convertible bond is a special bond issued by a listed company that can be converted into the company's **, this kind of bond is issued with a provision for conversion**, the holder can convert the convertible bond into **, and at the same time, the bond can be held to repay the principal and interest at maturity. The value of the convertible bond is equal to the base value of the ordinary bond plus the embedded ** option value, which is a hybrid bond product with both debt and equity properties.

Specifically, when it comes to the suitable investment objects of Huaan convertible bonds, they can be summarized into several categories: first, investors who are unwilling to take too much risk and do not want to miss the benefits of ****; The second is investors who hope to achieve stable returns through balanced asset allocation.

Convertible bonds, as the name suggests, are themselves bonds, but the company has agreed that they can be converted into ** according to a fixed **.

Usually the bond is 100 yuan face value, assuming that company A issues bonds, the bond can be converted into company A's ** according to 10 yuan, if company A's **now** is 11 yuan, your 100 yuan face value of the bond according to 10 yuan ** converted into 10 shares, you can sell it according to 11 yuan, if company A's ** 9 yuan, you can not convert, you can continue to hold the bond, even if you hold the principal and interest at maturity.

And convertible bonds** are invested in convertible bonds**.

To give an example of a convertible bond: petrochemical convertible bond, **: 110015, conversion price: yuan, the company's underlying stock: Sinopec, **: 600028, today's market price: yuan.

Convertible bonds effectively integrate the advantages of bonds and bonds, and in the process, convertible bonds are synchronized with them, and the income of this type of bonds significantly exceeds that of bonds; In the process, the trend of convertible bonds is similar to that of bonds, which can better avoid the risk of the first month, show good resistance to decline, and also meet the needs of investors to ensure the safety of the principal while pursuing higher investment return opportunities.

The return and risk are lower than the ** type, which is higher than the bond type; Suitable for moderate investors.

Convertible bonds are called convertible corporate bonds. In the current domestic market, it refers to convertible bonds under certain conditions.

Can be converted into corporate bonds. Convertible bonds have the dual attributes of debt and options, and their holders can choose to hold the bonds at maturity and obtain the company's repayment of principal and interest; You can also choose to convert to ** within an agreed period of time to enjoy dividend distribution or capital appreciation. Therefore, the investment community generally jokes that convertible bonds are the guarantee of principal for investors.

Convertible bonds, with the attributes of both ** and bonds, combine the long-term growth potential of ** and the security and fixed income advantages of bonds. In the process, it is also more beneficial to convertible bonds.

It's the first time I've heard of convertible bonds, and I think it should mean that a company can convert its issued bonds into ** at any time.

Suitable for those who are looking for low risk and high efficiency, right?