ATFXShare: Is there any prompt for compulsory redemption of convertible bonds, and stay away from investment fraud

Investors holding convertible bonds should not only pay attention to risk prevention, but also avoid being forced to redeem, because once the mandatory conditions are triggered, the convertible bonds will be fully redeemed by the company, and forced redemption often causes certain losses to the holders.

Is there a prompt for compulsory redemption of convertible bonds?

If a convertible bond undergoes mandatory redemption after triggering the early redemption condition, the securities company will send a text message andAPPThe pop-up method reminds customers who hold convertible bonds. Furthermore, before the compulsory redemption of convertible bonds, listed companies will issue a notice of compulsory redemption and indicate the price, time, and so on.

Although the risk of convertible bonds is not as high as stocks, there is ultimately a risk of loss. For example, when preparing to purchase convertible bonds that have triggered mandatory redemptions, securities companies will also remind attention to relevant investment risks on the buying interface.

When convertible bonds trigger the conditional redemption clause stipulated in the prospectus, such as: during the convertible bond conversion period, the company's stock continues to be redeemed30At least in trading days15The closing price of each trading day shall not be lower than the current conversion price130%The issuing company can choose to redeem the bonds in advance.

How to Calculate the Compulsory Redemption Price of Convertible Bonds?

The compulsory redemption price of convertible bonds shall be determined based on the face value of the bonds plus the accrued interest during the maturity period. The price for mandatory redemption is usually100Above yuan,103Less than yuan.

If the company has issued mandatory redemption regulations, investors can convert or sell convertible bonds before the stop date of stock conversion and the stop date of trading. Otherwise, the listed company will make mandatory redemption based on the face value of the convertible bonds plus interest. However, it should be noted that when convertible bonds are forcibly redeemed, the interest portion needs to be taxed, and the specific fee standard should be based on the listed company.