132018 Supplement 4

Original link: https://retire50blog.wang/invest/132018%E8%A1%A5%E5%85%854.html


Convertible bond premium arbitrage, originally speaking, is to sell the convertible bond to buy the underlying stock. Because of the long-term holding, it does not matter whether the convertible bond or the underlying stock. However, in the next year, Changdian’s convertible bonds will have three potential opportunities for downward revision and conversion of stock prices, one dividend, one fixed increase to major shareholders, and one fixed increase to institutions. (Not completely sure yet, whether the fixed increase will be revised down, and whether it will be a fixed increase for institutions) So, for Changdian, I hope to hold convertible bonds instead of shares, so for premium arbitrage, …

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