Are convertible corporate bonds guaranteed?

I. Guarantee conditions of convertible corporate bonds Whether convertible corporate bonds are regarded as unsecured corporate bonds does not require additional guarantee conditions. Investment risks are entirely borne by investors. In some cases, there are guarantee or mortgage conditions. China has guarantee requirements for issuing convertible corporate bonds. The Interim Measures stipulates that "the guarantee that the applicant has the ability to pay off debts on his behalf" is the basic condition for issuing convertible corporate bonds. 2. What are the types of corporate bonds (1) According to the bond term, corporate bonds can be divided into short-term corporate bonds, medium-term corporate bonds and long-term corporate bonds. According to the term classification of corporate bonds in China, the term of short-term corporate bonds is within 1 year, the term of medium-term corporate bonds is within 1 year and less than 5 years, and the term of long-term corporate bonds is more than 5 years. (2) According to whether the bonds are registered, corporate bonds can be divided into registered bonds and registered bonds. If the name of the bondholder is registered on the corporate bonds, the investors shall show their interests with their seals or other valid identification documents, sign the bonds at the time of transfer, and register with the issuing company at the same time, which is a registered bond, and vice versa. (3) According to whether the bonds are secured or not, corporate bonds can be divided into credit bonds and secured bonds. Credit bonds refer to unsecured bonds issued only by the fundraiser's own credit. Guaranteed bonds refer to bonds that guarantee the issuer to repay the principal and interest on schedule by means of mortgage, pledge and guarantee. Among them, mortgage bonds refer to bonds issued with real estate as collateral, pledge bonds refer to bonds issued with certificates of deposit, securities and movable property as collateral, and guarantee bonds refer to bonds issued with the credit guarantee of a third party. (4) According to whether bonds can be redeemed in advance, corporate bonds can be divided into bonds that can be redeemed in advance and bonds that cannot be redeemed in advance. If a company has the right to buy back all or part of its bonds at regular intervals or at any time before their maturity, such bonds are called callable corporate bonds, and vice versa. (5) According to the change of bond coupon rate, corporate bonds can be divided into fixed interest rate bonds, floating interest rate bill bonds and progressive interest rate bonds. Fixed-rate bonds refer to bonds with a fixed interest rate during the repayment period, floating-rate bills refer to bonds whose interest rate changes regularly with the market interest rate, and progressive-rate bonds refer to bonds whose interest rate increases with the maturity of bonds. (6) According to whether the issuer gives investors the option, corporate bonds can be divided into corporate bonds with option and corporate bonds without option. Corporate bonds with options mean that bondholders are given certain options, such as convertible corporate bonds, corporate bonds with warrants, and repayable corporate bonds. Bondholders of convertible companies can convert bonds into stocks issued by salt companies at a specified price within a certain period of time; Bondholders with warrants can buy shares of the agreed company with warrants; Refundable corporate bonds can be refunded within the prescribed time limit. On the contrary, bonds without the above options are corporate bonds without options. To sum up, convertible corporate bonds can convert bonds into company stocks. Generally, coupon rate is relatively low. For the bonds of such unsecured companies, there is generally no need to attach guarantee conditions. Since the investment is chosen, the investment risk is entirely borne by the investors themselves.