A few days ago, I posted a discussion, the content is: the deposit of large state-owned banks will be cut in interest rates, and the annualized three-year large-amount certificates of deposit will be reduced from 265% down to 235%。I have the impression that since 20 years, the interest rate on fixed deposits has been declining. Simply calculated below, 235% three-year simple interest is equivalent to an annualized rate of 229～2.30% of the currency**. Of course, in recent years, the interest rate of the commodity base has also been declining, but fortunately, the liquidity is better. When many people in the ** area say that they would rather put the bank than invest in **, in fact, most of the people who say this are very honest, and actually allocate their money to products such as ** and convertible bonds.
As I said before, spare money is definitely not as good as a better cargo base, and in today's declining yield on the cargo base, we can try to replace it with better products, and then some piggy banks** stand out. The so-called piggy bank**, in fact, is short-term pure debt** to put it bluntly. The biggest difference between this type of ** and partial debt ** is that there is no **position, so there will be basically no drawdown, which avoids the embarrassment of negative returns when redeeming money urgently. For example, the China-Europe short-term A bond** is close to 100%, and the remaining little bit is cash.
Of course, these short-term pure debt types are not on-site, so we need to understand its redemption characteristics. Taking CEIBS short-term bond A as an example, if the amount of holdings is determined according to the net value on day T on day T+1 if it is before 15:00 on T day, then the holding share will be determined on day T+1After 15:00 on T day**, then the holding share will be determined according to the net value on T+1 day on T+2 day. Therefore, we can generally improve the efficiency of funds.
As for redemption, it is necessary to distinguish the difference between CEIBS short-term debt A and its brother. CEIBS Short-Term Bond A also has a twin brother named CEIBS Short-Term Bond C. The difference between the two brothers is mainly reflected in the way they are charged. The following table gives the specific charging methods of the two **:
We can see that the highest redemption rate, management fee and custody fee rate of CEIBS Short-Term Bond A and CEIBS Short-Term Bond C are exactly the same.
CEIBS short-term bond A has a subscription rate, while CEIBS short-term bond C has no subscription rate.
There is no sales service rate for CEIBS Short-Term Bond A, while there is a sales service rate for CEIBS Short-Term Bond C.
In short, the front-end fee needs to be charged for the subscription fee, and the back-end fee is not charged, but the sales service fee needs to be charged every year.
The sales service fee is charged from the ** asset and is not charged separately to the investor, so you will see that the net value of CEIBS Short Bond C is lower than that of CEIBS Short Bond A.
For investors with long-term investment, they should choose the front-end charging method of China-Europe short-term bond A, because the back-end charging method requires annual sales service fees, which is not very cost-effective in the long run.
In addition, there are many ways to redeem short-term pure debt**, if it is redeemed after T day**, the transaction will be confirmed on T+2 day, and the funds will be transferred to Cash Treasure before 18:00 on T+2 day (take Xueqiu** as an example);If you want to redeem the bank card, you can only redeem the bank card before 12:00 on T+4. For the confirmation of redemption benefits, if the redemption application is submitted before 15:00 on the trading day, the redemption benefit will be calculated based on the net value after the market closes on the day, and the income of the day will also be counted. If the redemption application is submitted after 15:00 on the trading day, the redemption profit will be calculated based on the **net value after the market close on the next trading day, and the income on the day of application and the next day will be counted.
Next, let's take the income of pure debt **, taking China-Europe short-term bond A as an example, its investment targets are bonds and currencies, so the income mainly comes from these products.
Specifically, it is generally divided into three categories:
1. Coupon income.
The essence of bonds is to hold income, so bonds can obtain corresponding interest income through bonds. However, this part of the income is generally fixed.
2. Capital gains.
The market price of bonds fluctuates, and the manager of the bond ** earns the spread income by buying low and selling high, and this part of the capital gains is also the income of the bond **.
3. Leveraged trading.
We see that the total net value of CEIBS Short-Term Bond A exceeds 100%, and many people will question this. If the sum of the assets of the bond base accounts for more than 100% of the net value, it is generally due to the existence of liabilities in the operation process, such as accounts payable or bond pledge leveraged transactions. The manager of the bond can use the bond he holds as collateral to obtain more funds, and then use the money to invest in more bonds in order to obtain additional leveraged income, also known as bond repurchase transactions. For example, when the interest rate of market funds (2%) is lower than the coupon rate of bonds (3%), the manager can mortgage the bonds held by ** and borrow funds at the cost of 2% of the interest rate, and use the funds to buy bonds with a coupon rate of 3%, you can get an additional bond income of 1%.
Of course, if the interest rate of the funds is higher than the coupon rate of the bond, or if the bond defaults and other adverse effects, it may lead to a loss. Generally, in order to control the trading risk of the leveraged strategy, the leverage ratio of bonds** should not exceed 140%. The leverage of the closed-end bond base can reach 200%, mainly because there is no redemption pressure in this kind of **.
Finally, let's take a look at the income fluctuations of CEIBS Short-Term Bond A, overall, the return of CEIBS Short-Term Bond A is relatively stable, and the annualized return since its inception is significantly better than that of one-year fixed deposits. Therefore, we can use China-Europe short-term bond A as a cash substitute to outperform the returns of reverse repo and currency**, thereby improving the efficiency of asset allocation.
2023 Post Sprint Competition