Learn some financial knowledge every day, and don't be financially blind
*Delisting convertible bond is a kind of bond that holds the convertible bond investor can choose to convert the convertible bond into ** or continue to hold the convertible bond after the delisting.
**The main ways to deal with delisted convertible bonds are as follows:
If the conversion price of the convertible bond is lower than the delisting price of **, then the convertible investor can choose to convert the convertible bond into ** and then sell it before the delisting to reduce losses.
For example, the delisting price of a ** is 2 yuan, and the conversion price of a convertible bond is 15 yuan, then the convertible bond investor can convert each convertible bond into 66667 shares**, then sold for $2 ** for 1333The income of 34 yuan is equivalent to 88 of the face value of the convertible debt89%。In this way, the convertible investor can get 11. more than if he held the convertible bond directly11% of income.
However, there are certain risks associated with this approach, as there may be significant volatility before delisting, resulting in convertible bond investors not being able to sell in time or selling lower than expected.
For example, if the **appears before the delisting** and falls from $2 to $1, then the convertible bond investor can only sell at $1 and get 666The income of 67 yuan is equivalent to 44 of the face value of the convertible bonds44%。In this way, the convertible investor will receive 55% less than if he held the convertible bond directly56% of revenue.
Therefore, the way to convert to ** requires investors to pay close attention to the trend of **, grasp the opportunity to sell in time, and avoid missing the best sell**.
If the conversion price of the convertible bond is higher than the delisting price of **, or the convertible investor is confident in the future of **, then the convertible investor can choose to continue to hold the convertible bond and wait for the resumption of trading or the maturity of the convertible bond.
For example, if the delisting price of ** is 2 yuan, and the conversion price of a convertible bond is 3 yuan, then there is no need for the convertible bond investor to convert the convertible bond to **, because this will lead to losses. Convertible bond investors can continue to hold the convertible bonds and enjoy the interest income of the convertible bonds, as well as the possibility of resumption of trading.
If the trading resumes within a certain period of time, and the amount exceeds 3 yuan, then the convertible bond investor can convert the convertible bond into ** and then sell it to obtain higher returns. If the resumption of trading is not possible, or if it is less than 3 yuan, then the convertible bond investor can wait for the maturity of the convertible bond and get the principal returned according to the face value of the convertible bond.
The advantage of this method is that it can retain the creditor's rights of the convertible bonds, enjoy the interest income of the convertible bonds, and **after the resumption of trading**. In this way, convertible bond investors can obtain stable income, or obtain higher returns after the resumption of trading.
However, the disadvantage of this method is that it needs to bear the uncertainty after delisting, as well as the risk of liquidity and decline in the liquidity of the convertible bonds. **After delisting, the market trading of convertible bonds may be affected, resulting in reduced liquidity of convertible bonds and difficulty in selling.
At the same time, the convertible bond may also be negatively affected by the delisting to a level below par value. In this way, the convertible bond investor will face the risk of capital occupation and loss.
Therefore, the way to continue to hold convertible bonds requires investors to have enough patience and confidence, as well as judgment on the future of the company, in order to obtain the maximum return after the delisting.
If the convertible bond investor is not confident in the future of **, or wants to avoid the risk of **delisting, then the convertible bond investor can choose to sell the convertible bond before the delisting to lock in profits or reduce losses.
For example, the delisting price of a certain ** is 2 yuan, and the conversion price of a convertible bond is 3 yuan, then the convertible bond investor can sell the convertible bond before the delisting, assuming that the market of the convertible bond is 90 yuan, then the convertible bond investor can get an income of 90 yuan, which is equivalent to 60% of the face value of the convertible bond. In this way, convertible bond investors can exit the market in a timely manner and avoid subsequent uncertainties and risks.
The advantage of this method is that it can exit the market in time and avoid subsequent uncertainties and risks. However, the disadvantage of this method is that it will miss the opportunity after the resumption of trading, or sell below the face value of the convertible bond.
Therefore, the way to sell convertible bonds requires convertible bond investors to have a clear risk-return assessment and keen observation of the market in order to make the best decision before delisting.
To sum up, there are three main ways to deal with delisted convertible bonds: converting, continuing to hold convertible bonds and selling convertible bonds, each of which has its advantages, disadvantages and applicable conditions, and convertible bond investors should choose the most appropriate way according to their own circumstances and goals to achieve maximum returns or minimum losses.