Convertible Bond Investment Strategy Based On Amendment

The issue of convertible corporate bonds by listed companies can reduce costs,but the ultimate purpose is to convert convertible bonds into stocks of listed companies and ultimately realize equity financing The special amendment clause of the convertible bonds gives the issuer the right to make the conversion price reduction,so that it can choose whether to perform the conversion price reduction.Special amendment revision clauses are only available in convertible bonds in East Asia such as Japan and China,so there is less research in foreign and Chinese literature on the relevant content of the revised clauses.With the development of the domestic convertible bond market,the research and literature on convertible bonds have gradually been enriched,but the research on the special downward amendment clauses of convertible bonds is still relatively small.This article is a supplement to the research on the convertible bond amendmant clause,and I hope it will be helpful in this field.By sorting out the basic situation and the amendment of convertible bonds,we can help us better understand the development of China’s convertible bond market,and we can better understand the role of the term game in convertible bond investment,especially The role of the amendment clauses in the design and issuance of convertible bonds is conducive to investors’ investment in convertible bonds,and it is also conducive to the issuer’s proper design of convertible bonds,increa sing the probability that investors will convert into shares during the duration of the convertible bonds.And finally realize indirect equity financing.Statistics show that the price of convertible bonds is likely to rise on the first trading day when the issuer announces the revision of convertible bonds.Through research and analysis,we find that the revision event has had an obvious positive impact on the price of convertible bonds.The motivation of the conversion price adjustment is selected as the independent variable of convertible bond repair.The main factors that affect whether listed companies perform conversion price adjustment are analyzed through multiple regression analysis.And the Logit model is used to predict the current probability of the amendment of the existing convertible bonds,hoping to provide a certain degree of effective reference for investors in the amendment game.