The performance of convertible bond funds is active, three high investment varieties need to be cautious

category:Finance
 The performance of convertible bond funds is active, three high investment varieties need to be cautious


Average revenue over 10% during the year

Three high varieties need to be vigilant

Recently, the violent rising convertible bond market has attracted the attention of many investors.

According to public data, as of October 21, in the past month, the CSI convertible bond index has been depressed and then increased, with an increase of 1.41% and a range amplitude of 4.5%. Since the low on September 28, the index has risen by 3.58%, and the price of several bonds has increased by astonishing.

For example, the Blue Shield convertible bonds were repeatedly broken in the market, and soared by 153.1% in the past four trading days. The single day turnover rate of Wanli convertible bonds and Blue Shield convertible bonds exceeded 120 times, and the turnover rates of 20 individual bonds including Yokogawa convertible bonds and Shenglu convertible bonds also exceeded 10 times. The conversion premium rates of most convertible bonds were high.

Under the eye-catching performance of the convertible bond market, the performance of convertible bond theme funds has also become active recently. On October 20, Huaxia convertible bonds, southern Changyuan convertible bonds, Huafu convertible bonds and other convertible bonds increased by more than 1% in a single day.

Wind data shows that as of October 20, the average yield of 63 convertible bond funds has been 10.33% this year, showing a good return on investment. Among them, the yield of Penghua convertible bond was 28.79%, which temporarily ranked first in the yield of Convertible Bond Fund. The yield of several products such as BOC convertible bond enhancement, Huaxia convertible bond enhancement and southern Changyuan convertible bond also exceeded 20%, and the profit making effect was close to that of some equity funds.

With the bond market yield rising, the liquidity driven valuation expansion has been difficult to continue, and the follow-up needs to turn to the direction of performance landing. Talking about the eye-catching performance of the convertible bond market in the near future, Deng Xinyu, manager of Boshi Convertible Bond ETF fund, said that at present, the probability of the basic orientation is still relatively large, and the business conditions of enterprises are also improving continuously. It is expected that the risk assets in the fourth quarter will still have the value of participation. However, he also admitted that under the condition of high price, it is more difficult for convertible bonds to select bonds. Investors have a correct understanding of market volatility and pay attention to some reverse trading opportunities.

In view of the recent high turnover rate of some convertible bonds, many insiders believe that convertible bond investment should be far away from the three high varieties such as high price, high premium rate and high turnover rate.

For high price, high premium rate, high turnover rate varieties need to be cautious, away from market speculation. South China, a public fund raiser said.

A medium-sized public offering debt base manager in Beijing also believes that due to the small scale of some convertible bonds, it is easy to attract hot money into the market under the T + 0 system. However, the disconnection between valuation and fundamentals is not sustainable. As the convertible bonds trigger redemption clauses in succession, convertible bond holders may face the risk of large losses.

Convertible bond market space is expected

From the perspective of floor funds, the total scale of Convertible Bond ETF of Boshi fund is 1.114 billion yuan, a sharp increase of 31.35% compared with a month ago; during the same period, the total share of Boshi fund has also increased from 80 million shares to more than 100 million shares, with the total share increase of more than 30% in just one month.

From the perspective of over-the-counter funds, as of this years semi annual report, the scale of convertible bond funds has also increased from 38.931 billion yuan at the end of last year to 48.571 billion yuan, with an increase of nearly 10 billion yuan in half a year, an increase of about 25%.

Talking about the investor demand behind the scale growth of convertible bond products, a middle-sized public offering executive in Beijing said that the convertible bond market has been expanding rapidly in the past two years. This year, more than 100 convertible bonds have been listed in the market, and the number of existing convertible bonds has reached more than 350. Issuing convertible bonds has become a new way for listed companies to raise funds. With the active popularity of the market and the continuous expansion of the convertible bond market, the demand for convertible bond investment in the capital market is also growing. More and more institutional and individual investors begin to pay attention to the convertible bond investment. Institutions frequently issue products invested in the convertible bond market, which has laid the foundation for the market to continue to grow.

The above-mentioned Beijing medium-sized public offering debt base manager also said that buying convertible bonds with high cost performance ratio can effectively improve the expected return curve of the portfolio while controlling the risk. With the rapid expansion of secondary bond base and other varieties, convertible bond investment also has good market demand.

According to the debt base managers analysis, for enterprises, convertible bonds have the advantages of no lock-in periodic restrictions and uniform release of equity dilution pressure compared with fixed increase, which is a very important financing channel; for investors, convertible bonds can enhance the return of portfolio, with the characteristics of being aggressive and defensive. With the rapid expansion of the secondary bond base, the demand of investors for convertible bonds will gradually increase, and the convertible bond market has the momentum of sustained growth and has a very broad space. From the scale and proportion of convertible bonds, convertible bonds are indeed becoming an important financing method for listed companies. Wind data shows that from the date of issuance announcement, as of October 21, the number of companies that announced the issuance of convertible bonds this year has reached 161, surpassing 106 in the whole year of last year, a record high. Although there is no convertible bond with a volume of 10 billion yuan issued by national joint-stock banks this year, the total issuance scale also reached 178.13 billion yuan, an increase of 10.203 billion yuan year-on-year. In terms of the proportion of convertible bonds in equity financing, the scale of convertible bonds financing currently accounts for 13.89% of the equity financing scale, which has exceeded the preferred shares and has become an important equity financing mode after the issuance of additional shares and IPO. Source: Ren Hui, editor in charge of Securities Times_ NBJ9607

According to the debt base managers analysis, for enterprises, convertible bonds have the advantages of no lock-in periodic restrictions and uniform release of equity dilution pressure compared with fixed increase, which is a very important financing channel; for investors, convertible bonds can enhance the return of portfolio, with the characteristics of being aggressive and defensive. With the rapid expansion of the secondary bond base, the demand of investors for convertible bonds will gradually increase, and the convertible bond market has the momentum of sustained growth and has a very broad space.

From the scale and proportion of convertible bonds, convertible bonds are indeed becoming an important financing method for listed companies. Wind data shows that from the date of issuance announcement, as of October 21, the number of companies that announced the issuance of convertible bonds this year has reached 161, surpassing 106 in the whole year of last year, a record high. Although there is no convertible bond with a volume of 10 billion yuan issued by national joint-stock banks this year, the total issuance scale also reached 178.13 billion yuan, an increase of 10.203 billion yuan year-on-year.

In terms of the proportion of convertible bonds in equity financing, the scale of convertible bonds financing currently accounts for 13.89% of the equity financing scale, which has exceeded the preferred shares and has become an important equity financing mode after the issuance of additional shares and IPO.