Chinas investment strategy of convertible bonds-毕业论文翻译.docVIP

China’s investment strategy of convertible bonds [Abstract] This paper is the analysis of the pros and cons of investment in convertible bonds, based on the proposed convertible bond investment in the basic strategy, and then focused on convertible bond arbitrage investment strategy, trying to invest in convertible bonds market are some suggestions. [Keywords] convertible bond investment strategy arbitrage First, the investment advantages of convertible bonds 1. Protection of income As the first company to pay interest on dividends, so the benefits of convertible bonds more secure than stocks. Issuance of convertible bonds, relatively high business risk of companies and dividends unstable; and convertible bonds pay a fixed interest rate, the investment in the stock price while stable interest income. In addition, the bankruptcy liquidation, the convertible bond investors priority over ordinary shareholders. (2) taking into account the safety and growth Existing bonds, convertible bonds can also enjoy the security of the benefits of the company’s growth as long as the holder has held the bonds, the equivalent of access to fixed-income bond investments; good if the company’s growth, the holder can be convert into shares to profit from the growth for the company. And stock prices lead to a corresponding rise in the price of convertible bonds, convertible bonds holders can also directly sell convertible bonds to get the bid-ask spread if the stock prices fell sharply, convertible bond prices will fall to the same common bond of interest the price level, so as to enjoy the ordinary shares in companies with growth in revenue performance, while still providing convertible bonds in the stock situation is bad when the defensive protection. 3. Outperformed the general bond market According to U.S. and European markets to the actual inspection, the convertible bond market performance was stronger than ordinary bonds, the risk reward ratio al