Convertible bonds are a special kind of bonds, which can be converted into ** under certain conditions and enjoy the appreciation potential of **, while having the principal protection and interest income of the bond. Playing new bonds is an investment strategy, which takes advantage of the opportunity of the first price of convertible bonds at the time of issuance to sell them after listing after subscribing for new bonds and obtaining income from the price difference. Playing new bonds is a low-risk, high-return investment method, but it also needs to pay attention to some operational details and risk factors.
Playing new bonds means subscribing for newly issued convertible bonds. Convertible bonds are a special kind of bonds, which can be converted into ** under certain conditions and enjoy the appreciation potential of **, while having the principal protection and interest income of the bond. The convertible bond is affected by both the bond market and the market, and generally speaking, when the market performs well, the convertible bond will be, and vice versa. The convertible bond is also affected by factors such as the credit status of the issuing company, the conversion value, and the conversion premium rate, which will affect the conversion willingness and trading activity of the convertible bond.
The purpose of the new bond is to take advantage of the opportunity when the convertible bond is issued to be lower than the market price, subscribe for the new bond and sell it after listing, so as to obtain the difference in price. Generally speaking, the issue price of convertible bonds is 100 yuan, and the ** after listing is often higher than 100 yuan, which gives investors a room to make money. Generally speaking, the listing of convertible bonds will fluctuate between 100 yuan and 120 yuan, and the number of subscriptions is restricted by the winning rate, which means that the proportion of successful subscriptions is not too high. As a result, the yield on new bonds is generally between 5% and 20%, and sometimes even higher.
Open ** account and convertible bond permissions. If you want to play new debts, you must first have a ** account, which can be opened online or offline in ** company, and then open the trading authority of convertible bonds in ** account. It should be noted that from June 18, 2022, the China Securities Regulatory Commission (CSRC) has put forward new suitability requirements for investors who play new bondsIt is required that the investor's ** account has been opened for no less than 2 years, and the average daily ** assets within 20 trading days before the application are not less than 100,000 yuan, otherwise they cannot participate in the new debt.
Learn about the issuance of convertible bonds. After opening an ** account and convertible bond authority, investors can pay attention to the information of the recently issued convertible bonds, including the issuing company, issuance size, issuance**, subscription date, listing date, conversion price, conversion ratio, etc.
Subscribe for convertible bonds. Within the subscription date of the convertible bond, investors can subscribe through the company's trading software or the company, enter the convertible bond, quantity, etc., and submit the subscription after confirmation. The subscription of convertible bonds** is generally 100 yuan, and the number of subscriptions needs to be an integer multiple of 10, that is, 10, 20, 30, etc., and a maximum of 10,000 can be subscribed, that is, 1 million yuan. There is no need to freeze funds in advance for the purchase of convertible bonds, and payment is only required after winning the lot.
Payment and awaiting listing. After subscribing for convertible bonds, investors need to wait for the announcement of the winning result, which can generally be queried on the second trading day after the subscription. If the investor wins the lottery, the investor needs to pay the corresponding amount within the specified time, otherwise it will be deemed to have given up the lottery. Generally speaking, one signature is equal to 10 convertible bonds, that is, 1,000 yuan, and in most cases, investors can only win one or two signatures, that is, 1,000 yuan or 2,000 yuan. After paying the payment, investors can wait for the listing of convertible bonds, which can generally be traded on the ** exchange about 20 trading days after subscription.
Sell convertible bonds. After the convertible bond is listed, investors can choose the right time to sell the convertible bond according to market conditions and their own goals to achieve returns. Generally speaking, the ** of convertible bonds after listing will be higher than the issue price, which gives investors a room to make money. If the convertible bond rises significantly after listing, investors can choose to sell on the same day to lock in the income. If the convertible bond is broken after listing, that is, it is lower than the issue price, investors can choose to hold and wait, or stop losses in time to avoid the expansion of losses. If the volatility of the convertible bond after listing is not large, investors can choose to hold it for a long time and enjoy interest income and equity conversion income.
It takes advantage of the opportunity of the first lower market price of convertible bonds when it is issued, and sells them after listing after subscribing for new bonds to obtain the difference in price. The core issue of new bonds is how to increase the winning rate, that is, how to increase the probability of successful subscription. Investors can indirectly increase the winning rate by choosing brokerages and convertible bonds with a high winning rate, subscribing for multiple convertible bonds in a dispersed manner, and increasing the number of subscriptions.