One is to accept the current ** and place a pending order on the down limit;The second is to find the transfer of shares in a timely manner, and pass on the convertible bonds to the best of the dayThe third is to accept the redemption at the redemption price of the listed company. However, since convertible bonds have fallen to the limit, in some respects, continuing to hold them is not the mainstream expectation, and it may be prudent to respond in a timely and active manner.
Convertible bonds are bonds issued by listed companies, and when they are different from ordinary bonds, this kind of bonds can be converted into the ** of the listed company according to the needs of investors. However, this also has a certain time limit, just like after a listed company issues a convertible bond, it can be redeemed according to the corresponding ** within a certain period of time.
Similar to **, convertible bonds can also be bought and sold in ** companies, and there are many similarities with ordinary ** in terms of trading hours, trading mechanisms, and even price limits. This is also the reason why many investors choose convertible bond transactions, because compared to **, in addition to buying and selling transactions, convertible bonds also have two more options: equity conversion and redemption.
However, it should be pointed out that the number of channels selected for trading does not necessarily translate into actual profits. Therefore, in the process of convertible bond trading, it is inevitable to encounter the embarrassing situation of a 20% drop limit. In the sense of the bond swap itself, you can choose the methods mentioned above and endure the pain and return to a relatively safe range. But there are also aggressive investors who stick to their original choices. If that's the case, here are a few things to look out for:
1.Hold your horses.
When encountering a limit on convertible bonds, investors first need to stay calm and not blindly follow the trend and sell. Factors such as the fundamentals and valuation of convertible bonds, as well as market trends, should be analyzed to make rational decisions.
2.Analyze the causes.
Investors need to carefully analyze the reasons for the fall limit of convertible bonds. If it is caused by a deterioration in market sentiment, then you can wait for market sentiment to recover before considering**. If it is due to a decline in the company's performance or a downturn in the industry, then further analysis is required to determine whether these factors will continue to affect the value of the convertible bond.
3.Consider convertingIf the convertible bond lasts**, investors can consider converting it to the corresponding **. In this way, you can avoid the losses caused by the continuation of the convertible bonds, and at the same time, you can also get more returns. It is important to note that factors such as fundamentals and valuations, as well as market trends, need to be carefully analyzed before conversion.
4.Hold and wait.
For some convertible bonds with good fundamentals and reasonable valuations, investors can choose to hold them and wait for their value to recover. During the holding period, it is necessary to pay close attention to changes in factors such as market dynamics and company performance in order to make adjustments in time.
In short, in the face of the falling limit of convertible bonds, investors need to remain calm, analyze the reasons, consider switching or holding and waiting. It should be noted that investment is risky, and investors need to make a reasonable asset allocation according to their own risk tolerance and investment objectives.
The above content is a comprehensive online public material and does not represent any investment advice or recommendation, and investment should be cautious.