It's too late, this may be a "pit". The "pits" of convertible bonds can be roughly divided into the following categories: 1, and clause pits: improper clause design, refusal to repair in the next period, forgetting the redemption date, etc. 2, positive stock pit: poor companies are not necessarily poor convertible bonds, but "bull stocks" are more hurtful; 3. First-class pit: the unreasonable design of the issuance plan leads to the failure of the issuance, and the high winning rate leads to the "explosive position" of the organization, the listing is broken, and the approval process is long; 4. Valuation pit: There are often other flaws behind seemingly cheap; 5. Other pits: As the most liquid product, it is often used to cash out liquidity when liquidity problems occur; Small-cap convertible bonds have poor liquidity, and once they are wrong, they cannot stop loss.
In addition, many convertible bonds are very illiquid. Once the stock market trend reverses, investors will almost easily give in and lack the ability to stop losses. Therefore, we often remind investors that small and medium-sized convertible bonds often intervene at a low level and need higher confidence in fundamentals.