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Play in the bond market | bond product specification

When buying health care drugs, few people are willing to delve into the pharmacology. But cattle read the prescription manual every time to get a rough idea of what the drug can treat, how it is taken, and the potential side effects.

It is said that the choice of investment bonds is like buying health care drugs, bond recruitment also has a specification, which will clearly indicate the maturity, interest rate, issue price and other terms of the bond, warning the risk and how to deal with it after default. But it's werewolves who can read the whole manual.

There is a complex and boring soul between the lines, and it is no wonder that no one is interested except for insiders. Almost all of us got into the car so confused that we didn't know why to overturn it later.

In order to save you from waiting for the wrong car in time, Niuniu picked out the important information in the manual today.——How do you look at revenue and return time? What do you think of risks and side effects?


1. Efficacy: what is the benefit?

Like bank deposits, yields look at interest rates, and the interest rates on bonds are called The "coupon rate", and the principal that can be recovered even if it is due, is called "face value".

For example, our country five The contract table of the annual treasury bonds states:

Simply understand, if Niuniu buys face value, one hundred Coupon rate 3% Well, this year's gains will be three Yuan. Generally speaking, the bonds issued in China are generally each face value. one hundred RMB.



2. Time to take: what do you think in return?

The maturity of debt service varies from months to decades. And"maturity date" is the indicator of your return to principal and interest rate, which is usually on the due date. one To five The year is regarded as short-term five To twelve The year is regarded as the middle term twelve More than one year is a long term.

If Niuniu bought a five-year bond today. In these five years, each fixed period will receive a payment of interest, after the expiration of the happy harvest principal. In an ideal state, the distribution of benefits might be as follows:

Here are two measures of return, one of which is The "current rate of return", the idealized data used to tempt you in the specification, is the "maturity rate", which takes into account the final rate of return calculated by factors such as compound interest rates, change-of-hand differentials between investors, inflation and so on, taking into account the value of time.


3. Side effects: betrayal? The coquettish operation of the company to repay it in advance

It seems that love between heaven and earth will end with a change of heart on one side, and bond investment, which seems to make a steady profit, will betray investors because of the coquettish operation of the issuer.

For example, some"bonds can be repaid in advance", allowing issuers to repay some or all of their debts at the agreed redemption price before the maturity of the bonds, and then issue new bonds at lower interest rates. This greatly reduces the financing cost of the enterprise, but also causes the loss of investors.——In the face of falling market interest rates, early recovery of funds is not easy to find a good place to go. 2000 The dotcom bubble, 2008 Many people fell into this pit during the annual mortgage crisis.

Therefore, the indicator of "minimum yield" is very important. It is the guarantee of return that the company must give investors when it redeemed in advance. Only by understanding the bottom line rules of the bond world can we better protect ourselves.


Conclusion

Although bond recruitment instructions are really boring, you should take a closer look at the most basic factors, such as returns, returns and potential risks, before investing in bonds. After all, the bond world is complicated and changeable, to go stupid white sweet people to set up, it is very likely because of the coquettish operation of the issuer and cool.

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