The soul asks: what about the urgent money in life?

In fact, this is also the operating logic of the bond market. The essence of a bond is a financial contract with interest that a government agency or company sells to investors in order to borrow money. In this process, the government, financial institutions, enterprises and other institutions are borrowers of funds; individual investors are borrowers of bonds; and underwriting and rating agencies play the role of intermediary services.

Bonds provide investors with a fixed return and the principal can be recovered at maturity. Compared with the skyrocketing and plummeting stocks, the market price changes less, the expected return is relatively stable and the risk is lower.

See here, is there an impulse to bond trading? Don't worry, Niuniu will first take you to understand the types of bonds today. After all, only by knowing yourself and your opponent can you make money out of it.

When it comes to the classification of bonds, it is really a broad and profound knowledge, and even according to the official method is enough to dazzle people--

Want to find the secret of making money in this picture as messy as mahua? I guess it won't be easy. Here Niuniu sorts out two major bond types according to the investment style.

01 interest rate debt-the first choice for conservative and pragmatic investors

For low-key and pragmatic conservative investors, low risk is the premise of all decisions, when the national credit endorsement of the "interest rate debt" is their best choice. Interest rate bonds are bonds mainly affected by benchmark interest rates, including treasury bonds, local government bonds, policy bank bonds and central bank bills. The issuer is the state or the government.

With his powerful father on his back, there is no need to worry that they will not be able to pay back the money. Investment interest rate debt can be said to be as stable as a rock, and the probability of credit default is extremely low, but it may also be affected by macroeconomic conditions, interest rate changes and inflation.

Of course, low risk is accompanied by low yields. After all, God opens a window for you and must close a door. (poisonous chicken soup warning! )

02 Credit debt-preference of adventurous and competitive investors

If you are an investor who adheres to the concept of "earning one day and risking one day" and advocates the concept of "big money, big investment and big return" advocated by Li Ka-shing, then a credit debt with a considerable yield may be more in line with your setting.

Credit debt, as the name implies, in addition to the interest rate, the issuer's credit (debt repayment ability) is an important factor affecting this kind of bonds. There are many kinds of credit debts, the most common of which includeFinancial bonds, corporate bonds, corporate bonds, medium-term notesWait.

Among themFinancial debtBonds issued by banks and other financial institutions. Because the credit rating of the boss behind is relatively high, the risk of default is smaller and safer. Although the yield is at the bottom of the whole credit family, it is also higher than the interest rate of treasury bonds and bank deposits. It is suitable for junior adventurers who want to try it.

BOC Aviation Leasing, as a global and Asia's largest operating aircraft leasing company, its business model benefits from the strong trend of the global aviation industry. The company has better credit quality, sufficient liquidity and better financing capacity.

Corporate debtAnd corporate bonds sound like twin brothers. There is no difference between the two countries in Europe and the United States, but there is still a difference in the domestic bond market. Most of the issuers of corporate bonds are "big brother" enterprises with a national brand background, which are supervised by the National Development and Reform Commission, while corporate bonds are issued by joint-stock companies and limited companies and regulated by the Securities Regulatory Commission.

The coupon of China Evergrande Group's corporate bonds is as high as 11.5%, which is very attractive to investors who have strong risk tolerance and pursue high yields.

Credit debtThe rate of return is often very attractive, let people for this "one after another", but credit debt is also called "unsecured risk", because you need to bear a certain credit risk, accidentally or even the risk of losing capital.

03 differences in priority of different bonds

If the bond issuer goes bankrupt or is wound up by creditors, it needs to give priority to the payment of the bonds of the bondholders. If the issuer does not have sufficient assets to repay all debts, there must be a system in place to provide that holders of that kind of bonds have the right of priority. The priority of bonds refers to the priority of bondholders to claim assets if the bond issuer defaults.

The priority order of creditors is as follows:

1. Preferred guaranteed Bond (Senior secured bonds)

two。 Preferred unsecured Bond (Senior unsecured bonds)

3. Unsecured Bond (Unsecured bonds)

4. Subordinated bond (Subordinated bonds)

Guaranteed bond Secured bondsA bond secured by specific assets (such as property and equipment) or the income of the bond issuer. If the issuer defaults, the bondholder has the right to claim the issuer's assets.

Unsecured bond Unsecured bonds(also known as "credit bonds") does not provide specific assets as collateral, but is guaranteed only by the credibility of the issuer. In other words, investors have no claim to specific collateral.

Senior bond Senior BondsThe priority in the issuer's capital structure comes before subordinated bonds. If the issuer defaults, the senior bondholder receives any repayment before the subordinated bondholder.

Subordinated bond Subordinated bonds(also known as "junior bonds") the priority of claim in the event of bankruptcy and liquidation of the issuer is lower than that of other bonds. Compared with senior bonds, subordinated bonds generally have a lower credit rating and therefore have higher yields.

Even if both of China Evergrande Group's bonds are priority guaranteed bonds, investors should not think that bond products are 100% protected because of their higher priority. Because if all the assets of the issuer are insufficient to repay the arrears of the government, the salaries of employees, the arrears of business partners or other secured debts, the holders of priority guaranteed bonds still have the opportunity to lose some or all of their investment principal, no bond priority can guarantee investors against any loss.

Conclusion

Bonds are gradually favored by investors because of their advantages such as low risk and better return. The wide variety of bond market is a battlefield of courage and wisdom. No matter what type of investor you are, you can't forget the delicate relationship between return and risk.