On the one hand, it is an excessively high conversion premium rate, on the other hand, it is a very high yield to maturity, speculative funds gather speculative convertible bonds, investment-type convertible bonds "blood loss", * low, risk-averse investors can take high-yield convertible bonds as financial management to hold, can have a relatively stable rate of return, in case of catching up with the big bull market is coming quickly, there are unexpected surprises.
In the minds of A-share investors, convertible bonds are highly liquid, T+0, and highly speculative varieties with no price limit, but now, some bank stock convertible bonds that are not long from maturity have a high yield to maturity. The so-called yield to maturity refers to the risk-free return of the listed company redeeming the bond that the investor is holding now** and holding at maturity. According to ** reports, the yield to maturity of some banks' convertible bonds has exceeded 3% annualized, exceeding the yield of many banks' wealth management products.
Investors know that the value of convertible bonds comes from the value of conversion and the value of pure bonds, those with a high conversion premium rate, investors value its conversion value, and those convertible bonds whose conversion price is much higher than the stock price, investors are expected to convert to equity is almost zero, and its value is mainly the value of pure debt, which is also the main reason for convertible bonds to protect investors.
These bank stocks are now worth more pure debt than they traded**, so they are showing high yields to maturity. Investors cannot simply use the coupon rate to calculate the maturity value of convertible bonds, because convertible bonds will have a buyback clause when they are close to maturity, that is, investors can choose to sell the convertible bonds back to the listed company. For example, when the heavy bank convertible bonds, investors can sell the convertible bonds back to the listed company according to the ** of 110 yuan, which means that the investor can now hold the heavy bank convertible bonds and mature, and they can put 101The conversion of 67 yuan into 110 yuan of bonds, it took a little more than four years, and you can get not a lot of interest income in the middle, and most importantly, there is almost no risk in such an operation.
So what causes the ultra-high yield to maturity of ** convertible bonds and the ultra-high conversion premium rate of small-cap convertible bonds?The immediate reason is investor preference. A large part of investors buy convertible bonds are for speculation, the value is T+0 and there is no price limit, it is this speculation, expelled the original value investors, but this kind of convertible bonds are difficult to appear speculative funds into, so it has become a popular sector in the cold stocks, its ** is naturally far below its true value, investors if ** this kind of convertible bonds, can be regarded as a kind of value investment.
Investors should not think that this kind of convertible bonds can only get the yield to maturity, in fact, if investors are lucky, there is also the possibility of getting unexpected surprises, and take heavy silver convertible bonds as an example, the company's conversion of shares ** is 105 yuan, the latest stock price is 712 yuan, if the company's stock price in the future to 12 yuan, then the heavy bank convertible bonds will exceed 110 yuan, if the stock price continues, the heavy silver convertible bonds can reflect the value of the shares, at that time, the investor's income level will far exceed the financial products. However, such an increase would require a larger level to materialize.
For the convertible bond market, investors still need to keep an eye on it, and if the convertible bonds** remain reasonable, then it may be better to hold convertible bonds than to hold most**, which has been tested in the history of the market.
Beijing Business Daily commentator Zhou Kejing.