2026-3-31 Convertible Bonds Portfolio Adjustment

Investing is a popularity contest. Buying when demand is at its peak is the most dangerous—at that time, all favorable factors and viewpoints have already been priced in, and there will never be new buyers again…

The safest investment with the greatest profit potential is to buy when nobody likes it. Given time, once the issue becomes popular, its price can only move in one direction: up!

At the moment, my current personal convertible bond allocation ratio is not high (overall around 45%). I’m hovering near the lower end of my holdings. To deal with the possibility of still another new high, I’m not planning to proactively cut positions first. Last week I slightly increased my holdings to keep the allocation; it’s truly not easy. This year, only the first three months are in, and the maximum drawdown is already 8.2%, which is more than last year’s full year. This is a year when investing is anything but calm…

Yesterday’s overall market performance:

On the previous trading day Convertible bonds fell A-shares traded U.S. stocks traded FTSE A50 fell. U.S. stocks were slightly consolidating last night. The stock markets of South Korea and Japan that had opened were both slightly down. As for A-shares, it’s unclear whether today will follow and by how much. I expect today to consolidate. External influencing factors are still very large. We’ll watch whether convertible bonds can still hold steady today. In the recent strategy: overall it hasn’t stabilized—look less, act less. Don’t add to positions or adjust too quickly. If your allocation is very low, you can start gradually adjusting to below 50%…

The convertible bond index fell from 2090 on February 13, 2023 to 1753 on February 5, 2024. Then to the current 2575. The current median is 134.2, with a “temperature” of 82.7 degrees. There are 218 convertible bonds priced above 130 yuan, which is 15 fewer than the previous day, accounting for 62.6%…; 13 are below 110 yuan, which is 1 more than the previous day. The price hit the lowest 0/ highest 2. In March’s convertible bonds: 13 green and 8 red. Convertible bond trading volume was 66.4 billion yuan, down 5.3 billion from the previous trading day. Turnover rate was 13.3%, and it’s down to 60 billion yuan on day 1. The convertible bond index fell 22 points to 2575. The average price was 152.3, down 1.2 from the previous day. Median premium was 33.8%, down 1.3 from the previous day. A-share trading volume was 1,927.8 billion yuan, up 60 billion from the previous day. Yesterday opened lower and drifted lower, ending with a mid-sized decline