Analysis On The Investment Value Of Exchangeable Bonds

As a financial derivative with coexistence of stocks and bonds,exchangeable bonds play an increasingly important role in the capital market.From a realistic point of view,with the diversification of corporate financing methods and the introduction of new financing regulations in China,exchangeable bonds are increasingly welcomed by issuers,and the number and size of the bonds are constantly rising,The value of their investments deserves attention.From a theoretical point of view,the exchangeable bonds are derived from the convertible bonds,but the research on the convertible bonds is much richer than the exchangeable bonds.Although the two have very similar similarities in investment characteristics,there are differences in the risk-taking subjects,etc.Investors still need to fully understand the value of the exchangeable bonds.Based on the perspective of investors,this paper first defines the concept of exchangeable bonds by comparing the similarities and differences between convertible bonds and exchangeable bonds,and analyzes the attributes of exchangeable bonds.The relevant theories and literature are reviewed and constructed for the rest of the paper,The analytical framework for the value of exchangeable bonds provides a theoretical basis.Then,analyzing the current situation and existing problems of the current market of exchangeable bonds,and put forward the influencing factors and evaluation framework of the value of the exchangeable bond's investment.Finally,through the case of "EB of 17 ZHONGYOU",the framework was used to evaluate the value of the exchangeable bonds.First,to determine the stock-debt bondability of the exchangeable bonds,this article mainly analyzes the situation of the issuer of the exchangeable bonds and the issue terms;Second,analyzing the pricing of exchangeable bonds,This paper adopts the Monte Carlo simulation method to make theoretical pricing,and uses the issuance terms to judge the various exit methods of exchangeable bonds,so as to resolve the mutual influence of the value of each option and the problem of path dependence in the valuation,get the theoretical pricing and the probability of exit,analyze its valuation and determine the stock-debt bondability;Third,analyzing the risks of exchangeable bonds,on the one hand,analyzing the sources of the risks of exchangeable bonds,and on the other hand,analyzing the credit risk,stock price risk and redemption risk of exchangeable bonds from the issuer's conditions and terms.In sum,this paper starts with qualitative and quantitative construction of the investment value assessment framework of the exchangeable bonds from the three aspects of the stock bond judgment,valuation and risk of the exchangeable bonds,hoping to promote investors' understanding of the exchangeable bonds,and Provide some reference for investors.