During the year, 52 debt bases were declared to be in liquidation and public offering was suggested to seize the opportunity on the left side of the bond market

category:Finance
 During the year, 52 debt bases were declared to be in liquidation and public offering was suggested to seize the opportunity on the left side of the bond market


Liquidation of 52 debt bases during the year

On October 21, the ABC Huili Fund announced that, as of October 16, the net asset value of the convertible bonds of ABC Huili had been less than RMB 50 million for 149 consecutive working days, triggering the termination clause of the fund as stipulated in the fund contract. In order to protect the interests of the fund unitholders, the fund will terminate and carry out property liquidation in accordance with the relevant provisions of the fund contract without holding a general meeting of the holders.

According to the announcement, the final operation date of the convertible bonds of ABC Huili is October 26, and the fund will go into liquidation procedures from October 27. The semi annual report showed that the fund was only 19 million yuan at the end of the second quarter.

In addition to the funds that trigger the termination clause of the fund and passively enter into the liquidation procedure, a number of funds take the initiative to hold a general meeting of the holders to consider the termination of the fund contract. Take the pure debt of China Merchants Zhaoxuan, which entered the liquidation process on October 20, as an example. The announcement of the previous day showed that the fund had recently held a meeting of fund holders to consider and approve the termination of the fund contract. As for the reasons for the announcement of liquidation, China Merchants Fund said, due to the change of market environment, the fund share holders redeemed the fund shares on a large scale, which led to a significant decrease in the scale of the fund. The high fund operating costs seriously eroded the investment income of the existing fund share holders of the fund, and reduced the overall operation efficiency of the fund manager.

According to wind data, since this year, 52 bond funds have been declared liquidation, accounting for 43.3% of the funds that announced the termination of fund contracts. In the same period last year, only 35 bond funds entered liquidation.

According to the director of a public offering and fixed income company in South China, there may be two main reasons behind the increase in the number of debt base liquidations since this year: first, interest rates have fallen sharply due to the epidemic situation at the beginning of the year, and interest rates have experienced a rapid upward phase since the end of April, and the bond market has continued to fluctuate and adjust. Under the seesaw effect of stocks and bonds, a lot of funds have flowed from the bond market to the stock market, resulting in the decline in the performance and scale of bond funds u3002 According to the data released by the China Fund Industry Association, since the end of May, the share of bond funds has been declining, from 3.07 trillion shares to 2.57 trillion shares at the end of August. Second, in recent years, there have been frequent defaults in the bond market. Many bond funds that have stepped on the thunder have been heavily redeemed. As a result, the scale has been shrinking, and the cost of maintaining normal operation is high. Finally, fund companies adopt the method of liquidation.

Bond market allocation window is approaching

Public investors generally believe that after five months of adjustment in the bond market, the allocation window is gradually approaching, and the opportunity is obviously greater than the risk.

Pengyang Fund believes that in the short term, the fundamentals of the bond market, capital supply and demand, and market sentiment still suppress the bond market, but there is limited room for further decline in the market, and the opportunities are obviously greater than the risks. Investors can choose the opportunity layout on the left side of the market inflection point, and gradually increase the allocation of bargain hunting.

Deng Dong, general manager of Baoying funds fixed income investment department, said: now is a good time to allocate bonds. The medium and short end has a high cost performance ratio, because the curve is relatively flat, and the interest rate spread of the super long end in 10 years and 30 years is relatively high. Medium and short-term financial bonds, interbank certificates of deposit, and 10-year and 30-year treasury bonds can be considered for long-term allocation; credit bonds can only select those with higher asset grade, while those with low-grade are not suitable for long-term allocation.

Nanhua Fund said that the economy will continue the recovery trend, but the strength will be weakened. The monetary policy seeks a balance between stable growth and risk prevention. There is no obvious tightening foundation for the capital. The capital interest rate center is expected to remain stable. After a significant round of adjustment in the bond market, the short end has been basically adjusted in place, and the space for the long-term interest rate to continue to rise is relatively limited. In the later stage, with the gradual slowdown of economic recovery, the bond market may usher in periodic trading opportunities. Nanhua fund also pointed out that for institutions pursuing stable returns, this is a good time for the spread cost bond fund to enter the market calmly. As the preferred choice of banks, insurance and other allocation institutions, in the volatile market environment, the post amortization cost method debt base income is stable and can be held at ease. In addition, it has the advantages of high leverage, tax-free and low rate. Source: Ren Hui, editor in charge of Securities Times_ NBJ9607

Nanhua Fund said that the economy will continue the recovery trend, but the strength will be weakened. The monetary policy seeks a balance between stable growth and risk prevention. There is no obvious tightening foundation for the capital. The capital interest rate center is expected to remain stable. After a significant round of adjustment in the bond market, the short end has been basically adjusted in place, and the space for the long-term interest rate to continue to rise is relatively limited. In the later stage, with the gradual slowdown of economic recovery, the bond market may usher in periodic trading opportunities.

Nanhua fund also pointed out that for institutions pursuing stable returns, this is a good time for the spread cost bond fund to enter the market calmly. As the preferred choice of banks, insurance and other allocation institutions, in the volatile market environment, the post amortization cost method debt base income is stable and can be held at ease. In addition, it has the advantages of high leverage, tax-free and low rate.