Shenyin Wanguo: In 2011, Investment In Bonds Is First Observed.

What is worth mentioning in 2010 is the leap forward development of the Shanghai and Shenzhen Stock Exchange bond market.

As of December 13th, 8 new convertible bonds were issued in 2010, with a total scale of 71 billion 730 million yuan.

It was nearly 6 times larger than the 12 billion yuan issue in 2009, and was more than doubled than the 2004 high of 33 billion 400 million yuan.

At present, the stock market of the convertible bond market in Shanghai and Shenzhen stock exchange is over 78 billion 600 million yuan, and the scale of the convertible bond is 36 billion 600 million yuan, of which the scale of the issuance of the petrochemical convertible bond is 23 billion yuan.

The total supply of convertible bond market in 2011 will exceed 100 billion yuan.

Although the issue of convertible bonds has reached a record high of 71 billion 700 million yuan this year, ICBC's convertible bonds and Bank of China convertible bonds have issued 65 billion yuan, accounting for more than 9 yuan. After two convertible bonds were listed, the Shanghai and Shenzhen bond market showed an obvious two yuan pattern.

The so-called "two yuan" pattern is that the two line convertible bonds are subject to the Yu Zheng stock elasticity and the scale of convertible bonds, which are more reflected in the long-term and long-term allocation value.

Unlike other small cap convertible bonds, the two line convertible bond premium is relatively low, and the dividend yield of the two line convertible bonds is very high, and the issuer's strong willingness to promote the conversion will not only make the two line convertible bonds better than the credit bonds, but also a good substitute for positive equity and even bank assets.

But with the recognition and preference of the market for convertible bonds, the terms of convertible bonds are becoming more and more stringent.

In 2010, the average protection period for new issuance of convertible bonds was 2 years, which was only lower than that in 2000 and 2002.

The sale of 110011.SH this year is 5 years, the highest in history.

In addition, the coupon rate of new convertible bonds also has a downward trend.

The average interest rate of convertible bonds in 2010 was 1.74 yuan (including interest on compensation), and the average interest rate decreased from third yuan in 2007 to 3.26 yuan in 2007.

The issuance of the 5 year Yanjing convertible bond is only 4.6 yuan this year. It is only higher than the historical water pport debt and airport debt in the 5 year convertible bonds.

Looking forward to the 2011 Shanghai and Shenzhen convertible bond market, with the intensive introduction of convertible bond financing plan, expansion should be a trend.

In practice, two bank bonds should still be the first choice.

Shenyin Wanguo derivatives analyst Zhu Lan believes that the absolute risk of bank bonds is relatively low, and the valuation of stocks is at a historical low, with long-term allocation value, and bank convertible bonds can be allocated as bottom positions.

Zhu Lan believes that in 2011, the investment strategy of convertible bonds should be defended before attacking.

In addition to strong defensive Bank of China convertible bonds, it can also be concerned about the low risk of 110007.SH and 110003.SH.

And the better attacking varieties in convertible bonds should pay attention to Tongling convertible bonds (126630.SZ) and 128233.SZ.

Zhu Lan believes that the underlying fundamentals are better and the stocks are stronger.

Two convertible bonds entered the stock pfer period in late January 2011 and late February respectively, and they could pay attention to their quotas to facilitate the conversion.