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Play in the bond market | active investment strategy—risk aversion law

Previously, in the "Types of risk in bonds", we counted the behaviors of the bond market that disappointed fool investors. Among them, the "source of all evil" interest rate risk and the "shameless" credit risk are the most common and intangible. Submitted to the bond market "The Book of Mine Clearance".

1. Avoid the "shameless man"—— credit risks

Credit risk takes the title of "the most scoundrel and the most helpless" in one fell swoop with the divine logic of "lending you money and paying you interest to swallow your principal".

However, the combat effectiveness of credit risk is relatively weak, if investors do their homework well in advance, they can evaluate and defend in advance. At this time, the "credit rating system" has become the most straightforward and efficient reference tool. However, in practice, credit rating can only play a limited role in investment decisions.

To invest in the bond market, we should not only carefully understand the situation of the issuers in advance, and try our best to avoid investing in corporate bonds with poor operating conditions or poor reputation, but also pay close attention to the market situation and changes in the operation of the company during the bond holding period, so that bonds can be sold in a timely manner to reduce losses.

2. Escape from the root of all evil—— Interest rate risk

Interest rate risk is a troublesome nuisance, because the market has been changing, interest rate fluctuations can not be more common. In addition to "swapping" bonds, interest rate risk bullies have nurtured a group of younger brothers——"inflation risk", "reinvestment risk", "currency risk" and so on, ambushed on the Nuggets road, waiting for the opportunity to dig holes for some "fool" investors. So how do you get rid of this clingy interest rate risk?

Long-term and short-term cooperation

No investor can fully predict the direction of the market, so betting all the money on the same type of bond is highly likely to pose a risk.

The maturity of bonds is spread out through long-term and short-term cooperation, and the concentrated interest rate risk is also dispersed. If interest rates rise, short-term investments can quickly find high-yield investment opportunities. If interest rates fall, long-term bonds can still maintain high yields.

Option——Give you a chance to regret it.

Do you usually have the consciousness of buying insurance? In financial markets, there is also such a product to hedge risk, that is, options.

Suppose Xiao Ji is now bullish on the bond market, he wants to get a large share of the bond, but he now does not have so much money in his heart, in addition to whispering with Xiao Jin, Xiao Ji when buying the bond at the same time to buy options from the small gold.

From the simple trading process shown above, the purchase option has the function of controlling the risk loss. After buying an option, once the bond market moves in the opposite direction from the forecast, he can give up the option and leave it invalid, and the maximum loss is only the option fee. But if the trend is the same as forecast, he has already bought insurance for himself to reduce losses.

If you sell you a "repentance" right, would you like to buy it in advance?

3. The formula of protecting the body and mind—— Three principles of Bond Investment

Of course, it is not easy to get rid of these two big risks as soon as you get started. Which master did not grow up all the way over? Here we have to mention the three principles of bond investment that condense the blood and tears of our ancestors.

Matching principle

When investing in bonds, we must choose different investment methods according to the characteristics of investment amount, maturity, stability and so on, and match the needs and risk preferences of individuals at the same time.

Decentralized investment principle

Whether it is a bond holding, a long-term period, or a long-term and short-term bond type, we should consider decentralized allocation, do not concentrate too much money on a bond, and do not concentrate on a time point on the "crazy coin", so as not to lose the whole army.

Portfolio investment principle

It is suggested that before the investment, copy "all ignore the risk only look at the return of the operation is to play hooligans" a hundred times! FUTU BULL suggests that after determining its expected return, it is necessary to spread the risk across different portfolio. Even if you are a risk-taking investor, you also need to allocate reliable investment-grade bonds to achieve higher comprehensive returns.


The two most common types of risks when investing in bonds——Credit risk and interest rate risk, if we do our homework well in advance, we can still reduce the loss. This requires familiarizing with the rules of the bond market in advance, learning to use the credit rating system, long-term and short-term cooperation and options, bearing in mind the principles of diversification, portfolio investment and matching. The most important thing is to take your wallet seriously and keep a close eye on changes in the market.

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