Debt-to-equity swap is a financing behavior of enterprises. The interest rate of convertible bonds is generally lower than that of ordinary bonds issued by companies, which reduces the financing cost of enterprises to a certain extent and relieves their debt pressure, so that companies can have more funds to develop their main business, which may push the stock price up, which is a positive. For banks, debt-to-equity swap can reduce the non-performing loan ratio and is a good way to control risks. But for individuals, it needs to be considered according to the conversion price. If the market value of the shares converted into shares at the conversion price is lower than the face value of the bonds held, it means that investors have lost money after the conversion; On the contrary, the market value of the stock after the conversion is greater than the face value of the bond, indicating that the investor is profitable after the conversion.
In the stock trading software, find bonds that can be converted into stocks, and there will be corresponding tips on the page. Follow the prompts on the page and click "Convert Shares". Because the stock trading software launched by each broker is different, investors need to take the actual operation path as the standard.
Convertible bonds bought on the same day can be declared for conversion on the same day. If you declare the share conversion on the same day, you can cancel the declaration before the close of the day. The converted shares can be listed and traded on the next trading day after the conversion. In the process of online subscription of convertible bonds by investors, each securities account can only subscribe once, and once the subscription is confirmed, it cannot be revoked.
According to Article 15 of the Implementation Measures for Non-public Issuance of Convertible Corporate Bonds by Unlisted Companies, convertible bonds can be converted into shares after six months from the date of issuance. A report period of share conversion can be set every three months, and the report period of share conversion shall not be less than 5 trading days and shall not exceed 10 trading days.
The minimum unit for converting convertible corporate bonds into shares is 1 share. After the bondholder applies for share conversion, the issuer will pay the face value and interest of the remaining convertible bonds in cash within five trading days after this happens.
Convertible corporate bonds refer to bonds that can be converted into designated stocks at a given conversion price within a certain period of time.
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