The threshold for ordinary people to buy urban investment bonds directly is very high: asking for more than five million financial assets, this article shuts out the vast majority of people. In addition, you also need to go to the securities company branch where you open an account to do certification, and you also need to take the exam before you can apply to become a qualified investor.
Even if they become professional investors, ordinary people can only buy large public urban investment bonds, and small public and private debt urban investment bonds are not eligible to buy.
The large public offering of urban investment bonds can be publicly publicized, and there is no upper limit on the number of people, but the bonds are required to be AAA bonds. If the bond is AAA and the urban investment bond class, the coupon rate of that type is pitifully low, most of which is between 3-6%.
It can also be publicly advertised in the small public offering class, but the upper limit of the number of holders cannot exceed 200, the bond rating is generally AA or AA+, the yield is slightly better, and qualified institutional investors can buy.
Private debt cannot be publicly advertised, nor can it exceed the upper limit of 200 people, so it is also set that only qualified institutional investors can buy. There are no specific requirements for bond ratings, in fact, it is generally AA-grade, or AA entity credit rating of urban investment companies can be issued. This type of coupon rate can be higher, generally up to 5-8% points.
Whether it is a small public offering or a private bond is in the Shanghai Stock Exchange (also known as Shanghai fixed income), the listing can be traded and circulated at any time, and the overall qualification can be. Just like stocks, do you say that the equity of listed companies is worth the value of the equity or the equity of unlisted companies? It's just that we are playing bonds, the previous non-standard urban investment bonds are unlisted debt, and standardized urban investment bonds are listed bonds that can be traded at any time, and its supervision is stricter, more compliant, and the liquidity is better.
With the above requirements, the asset management products made by institutions holding formal financial licenses are then packaged and taken to buy urban investment bonds.
There are no more than two ways to play this.
One is to play short-term bonds like stocks
This type is to buy low and sell high to make the difference.
This kind of play, if you only play pure urban investment bonds, its volatility is very small, the operable space is small, unless you run to gamble on Caiyun Provincial Park Province or Northeast City Investment Bonds.
Traders with a little more courage may have to play with industrial state-owned enterprise bonds. It is not difficult to gamble on the right time to earn an annualized thirty or forty, or even fifty or sixty. If you bet wrong, bet like a certain province to invest in bonds, then you can only cry in the toilet.
Of course, there are more radical ones who run to bet on real estate bonds. It is not difficult to double the bet, but if the bet is wrong, when the net value of the product is lower than the warning line or even the liquidation line, then the manager can only passively sell the bond to liquidate.
When this type of model encounters extreme performance, such as doubling performance, the manager draws 20% and takes 80% himself; when the extreme model is encountered, the product with poor performance is liquidated, and his loss is no different from nothing.
Let's take an analogy:
One may be the first year to take the bet right, doubled, the second year and then handed over to the management to take care of, when encountering such a good thing, it is estimated that the vast majority of people will increase investment, the second year manager gambled wrong, was liquidated and closed, at this time not only to the first year to earn the loss, but also the first year's principal and the second year's additional principal loss.
Another possibility is that the first year to take the wrong bet, the most extreme is the loss of the liquidation of the position. In the second year, the vast majority of people are estimated to never even touch it again, which is human nature.
The best thing is to stay away from the casino.
So we chose the following:
The second type: buy and hold expires
After this kind of purchase, it will wait for the principal and interest to be collected at maturity, and then take part of the underwriting fee to subsidize investors. Whether the price of the bond rises or falls in the middle, it generally does not operate, and it waits for the principal and interest to be due, as long as the urban investment bond does not default, its final yield is very close to the benchmark performance, and the volatility and drawdown rate are very small.
For example, we bought a two-year standard bond asset management product, which is currently mainly allocated with 3 urban investment bonds.
The first city investment bond has another 1.64 years to mature;
The second city investment bond has 1.95 years left;
Although the third urban investment bond has 4.85 years left to mature, it is designed by others to be 2+2+1 years, which is actually 2-year.
Different people have different risk preferences, some people like to go up and down, fluctuate, run to gamble, some people like stable fluctuations are very small.
What I personally found is that the richer people are, the more they will stay away from risk and like stability; the less money people, the more they like high returns and high risks, give a go, bicycles become motorcycles, and the more they like all kinds of tosses.
What we prefer is still less volatile, stable, and as we get older, we will become more and more stable in the future. In principle, industrial state-owned enterprises are not considered; as for real estate and industrial and commercial debts, it is still left to others to get rich, we have limited ability, and we can only make a little money within the scope of our own cognition.
I am a big Buddha, a licensed financial planner, with fund qualifications, securities qualifications, and the author of the book "Investment and Wealth Management: Financial Thinking and Asset Portfolio Allocation Strategy", a financial columnist.