On February 29, the People's Bank of China (PBOC) issued the Notice on Matters Concerning the Counter Business of the Interbank Bond Market (hereinafter referred to as the "Notice"). The Circular further expands the types of over-the-counter bond investments and optimizes the relevant institutional arrangements to facilitate bond investment by residents and other institutional investors. The notice will be implemented from May 1, 2024. According to the statistics of the central bank, as of the end of 2023, the balance of China's bond market is 158 trillion yuan, making it the second largest bond market in the world. A number of interviewed industry insiders believe that on the one hand, the issuance of the "Notice" will bring convenience to investors, especially individual investors, to invest in bonds, and then broaden residents' investment channels and enrich residents' investment choices; On the other hand, it will attract more investors to the bond market, enhance market activity and promote the development of a multi-level bond market. (News**: Beijing News).
China's bond market counter business originated in 2002, when the opportunity was to increase the channels for individuals and enterprises to purchase treasury bonds, so the central bank issued the "commercial bank counter book-entry treasury bond transaction management measures", at that time the investment varieties of counter bonds were only book-entry treasury bonds, to 2016, the "national inter-bank bond market counter business management measures" was released, which fully stipulates the rules for the counter bond business, not only for the first time to open the inter-bank bond market to individuals, but also increased the variety of bonds (government and financial bonds and local ** debt) and the way of trading.
For individual investors, this means that the channels for direct investment in bonds have increased, and while expanding the scope of investment categories, the "Notice" has repeatedly emphasized the need to pay attention to the suitability of investors and risk prevention and other related content, which is also the protection of the legitimate rights and interests of individual investors by the central bank. Although the risk of bond investment will be less than that of equity investment, as investors, the purpose of our investment is of course to achieve asset appreciation, so it is especially important to understand the risk and choose reliable and suitable products. In this issue, we focus on how to choose reliable bond-based products.
Look at past performance
Just as when the company recruits, HR will pay attention to understanding the candidate's past resume, and the selection of a bond base also needs to understand its past performance, although the past performance does not represent the future performance, but a long-term stable performance and good income often represents its manager has excellent investment management capabilities.
Knock on the point! When looking at past performance, don't just look at the recent or short- and medium-term situationFor those of you who have investment experience, you can intuitively see the performance of the company at different stages and the performance of the same kind through the sales platform. The short and medium term includes nearly 1 week, nearly 1 month, nearly 3 months and nearly half a year, and the long-term is more than 2 years. Of course, there will indeed be ** in the market that perform very well in both the short and medium term and the long term, but this kind of ** is rare, so it is stillIt is recommended that you focus on the performance of one** in one or more bull/bear cycles
In addition to paying attention to the performance of ** in different periods,It's also important to know how it performs in its classGenerally speaking, the sales platform will give the ranking of the same kind of products, in addition, specializedThe industry evaluation agency will also make a relatively fair and objective evaluation of the relevant **。Lead**Jun has also introduced the professional rating agencies on the market for small partners before, and the professional institutions mentioned here are all institutions that have been filed in China's ** industry association, such as Morningstar, Ji'an Jinxin, Shanghai**, China Merchants**, etc., the evaluation system of these rating agencies is different, so we can appropriately choose the results of 2-3 rating agencies as a reference when selecting **, generally under the same conditions, the high rating ** is of course the preferred option, as for how to refer to the rating results, you can review it specifically [ Profit Investment Teaching Classroom 67] Pick**? Let's count the stars first.
Look at the ** manager
The essence of investment is that investors hand over their funds to professional investors to take care of, and investors are most concerned about whether the professional investors can bring excess returns to themselves, so one of the key factors in making ** investment is to select ** manager, and the ** manager mentioned here includes **company and **manager.
We might as well think about it, when we choose to buy a certain product, will we be more willing to choose a well-known and well-known company? The same is true for **The products managed by the ** company or the ace ** manager with strong overall strength are of course more favored。Looking at the company, we should pay attention to its overall strength, such as the size of the management scale, the length of time in the relevant fields, the evaluation of the third party, etc., generally speaking, the overall strength of the company represents its investment management, detailed research, risk control and other aspects will have better performance, but,It should be noted that the business development focus of different ** companies will also be differentNo matter how good the performance of the company, it is impossible to ensure that all types of products have the best results, so it is recommended that the partners should still consider the situation of the company.
The manager and the company are inseparable and complement each otherExcellent managers are often inseparable from the strong support of the company's investment research team, and the investment performance of the manager is an important part of demonstrating the overall strength of the company. As the saying goes, "to choose a base is to choose a person". This is especially obvious in active investment, active management requires managers to maintain sufficient sensitivity to the market, and their judgment of trends, the ability to screen and integrate information will have a certain impact on investment. As mentioned above, we need to focus on the long-term performance of the past performance, among which there areWhat needs to be paid attention to is whether the manager has been replacedIf there is a replacement, it is necessary to look at the situation of the same product in different management periods separately.
To sum up, if you want to choose a reliable bond base, the past performance is the most worthy of everyone's attention and the easiest to verify indicators, although historical performance does not represent the future direction of this **, but after the precipitation of time, the performance of the best ** that can pass through the complete bull and bear cycle must have its advantages. Similarly, the best managers who can stand out in the ups and downs of the market are also likely to become good helpers for our investment, so how to specifically analyze the investment management performance of the ** manager? In the next issue, Lide **Jun plans to talk about several key indicators!