The data shows that during the year, 30 listed companies issued a downward revision of the convertible bond to the stock price announcement, the listed company revised the stock price, after which investors will have a greater probability of converting shares, for the speculative attributes of the highest high conversion premium rate of the double high convertible bonds, entering the forced conversion of shares means that speculation disappears, and the possibility of double high convertible bonds is not ruled out thereafter.
For convertible bonds whose stock price has fallen too much and the stock price is far lower than the conversion price, the downward revision of the conversion price of listed companies will promote investors to convert their shares, and at the same time, it will also allow investors who hold convertible bonds to gain more value, which is a good thing. However, for those convertible bonds that are in the manipulation of the market maker, the stock price is much higher than the face value, and the speculative nature of the convertible bonds, the logic of their survival is not to convert shares, and if such double-high convertible bonds enter the stage of forced equity conversion, it will have huge pressure on the convertible bonds, and investors should pay attention to the relevant investment risks.
Generally speaking, if the corresponding underlying stock** of the convertible bond is much lower than the conversion price, then the ** of the convertible bond will be lower than the face value of 100 yuan. However, some convertible bonds with a relatively small circulating market value, due to speculative reasons, the convertible bond transaction** is much higher than the face value of 100 yuan, and the resulting conversion premium rate is also very high, which is also a double-high convertible bond.
For double-high convertible bonds, the root cause of speculation is that convertible bonds cannot be forcibly redeemed, because once the mandatory redemption, the convertible bonds will be forced to delist, and investors will either convert to shares, or sell the convertible bonds back to the listed company according to the repurchase ** set by the listed company.
In fact, the survival space of double-high convertible bonds is speculative, and because the stock price is much lower than the conversion price, neither market makers nor investors believe that double-high convertible bonds will be compulsorily redeemed, generally speaking, the stock price needs to be higher than 30% of the conversion price before the listed company has the right to propose compulsory redemption. Therefore, if the listed company revises the conversion price to the level of the market price, and then the stock price is 30%, then there is a possibility of compulsory redemption of the convertible bond, and the theory of the convertible bond will be about 130 yuan.
That is to say, for convertible bonds, even if the conversion premium rate is high, as long as the convertible bond is not higher than 130 yuan, investors do not have to worry about the risk of forced redemption, but if the absolute ** of convertible bonds is too high, such as higher than 150 yuan or even 200 yuan, once the forced redemption is encountered, investors have the possibility of investment losses.
Therefore, this column suggests that investors, if the convertible bonds held belong to the double-high convertible bonds, and the absolute ** of the convertible bonds is higher than 130 yuan, then it is best to get out in time, after all, such convertible bonds only exist speculative value, once the stock price, convertible bonds not only do not have the space, on the contrary, there is a risk of forced redemption, if investors are really optimistic about the convertible bonds corresponding to the listed companies, or directly hold ** more secure, double-high convertible bonds no longer have the function of hedging, and have their own unique investment risks.
However, for many normal convertible bonds, the downward revision of the stock price of listed companies can increase the intrinsic value of convertible bonds, which is still very friendly to investors, and investors can pay attention to relevant investment opportunities. Generally speaking, if the convertible bond is less than 100 yuan, it will be absolutely positive if the conversion price is revised downward.
Beijing Business Daily commentator Zhou Kejing.