The year will come, the stock market will be closed, and the lack of funds is probably the most painful problem for shareholders! Generally, the pre-spring demand for funds has increased significantly in all areas, and thus may be influenced by liquidity, with a certain upward trend in the price of funds during the spring. Over the course of the year, it was understood that the national debt was repurchased, that idle funds were used in exchange for returns at extremely low risk, that the stockholders were happy with “sweety wool” and that it was easy to “over the years”. In this regard, the issue of “the repurchase of the national debt” has been addressed for your information by a journalist for tomatoes。
It's a fire to the government's debt
Repurchase is essentially a short-term loan, which can be understood as an individual borrowing his or her idle funds through the public debt buy-back market, while at the same time financing is directed to the lending party, which promises a certain interest rate, thereby obtaining fixed interest income. The financier, on the other hand, used its own national debt as collateral to obtain the funds and to service the debt after maturity. Compared to other repurchase items, repurchases of national debt are more secure than similar products and have significant interest rate gains, so individuals and institutions have been keen on repurchases of national debt in recent years。
On 20 january 2022, china information (834082) announced that it would use idle funds to participate in counter-purchase operations on national debt. At the same time, it claims that, in order to increase the efficiency of the company's funds and increase the return on investment, the company intends to use idle funds to obtain additional gains during the period between the date of the bill's adoption by the shareholders ' assembly (excluding that date) and 31 december 2022, in order to secure the capital requirements of the company's day-to-day production operations, and that, at any point in time, the company cumulatively uses unused national debt for purchases up to rmb 100,000 (inclusive). Within this amount, the funds can be used on a rolling basis, taking into account market conditions, to participate in the repurchase of the national debt。
Similarly, enterprises such as the flash light (300708. Sz) are also very interested in the repurchase of national debt, which has to be attributed to its low risk and flexibility of funds。
In response to risk, the flashback response indicated that fluctuations in the level of market interest rates prior to the rollback due date had no impact on transactions that had taken place since the reverse buy-back had been locked at the time of the initial take-off. The company's counter-purchase investment business is a pledge buy-back with a standard voucher, with no performance risk。
Choose the best purchase time, or seven times the yield
Today, with the downward revision of our current interest rates, it is increasingly difficult for idle funds to expect significant gains from current deposits. As at 24 january, the bank's current deposit rate was around 0. 30 per cent, and the seven-day annualized gain from paying the current product balance under the flag was around 2. 19 per cent. However, the interest rate on repurchases of the national debt amounted to 2. 250 per cent, even as compared with the floating rate of the surplus。
This spring's a stock was closed from 31 january to 6 february, and investors had the best operating time from 24 to 27, during which time more suitable types of repurchases of national debt were available. It is worth mentioning that if properly operated, the return on the repurchase of the national debt during the spring may be seven times greater than the return on the current deposit during the same period
Image from: widely issued securities
As shown in the figure above, the four-day bond repurchase, issued on 24 january, is available on 7 february for interest-bearing days of 13 days
The three-day national debt, issued on 25 january, was repurchased in reverse and the funds were available on 7 february for 12 days at interest rate
The two-day repurchase of the national debt issued on 26 january was available on 7 february for interest-bearing days of 11 days
The one-day repurchase of the national debt issued on 27 january was available on 7 february for interest-bearing days
About the strategy of repurchase of national debt
One day before non-working day
The new repurchase rule was formally implemented on 22 may 2017, which provided for the change of interest-bearing days from the nominal days of the buy-back period to the actual days spent on funds. The choice of which period is therefore a crucial decision。
2. How are the benefits calculated
[deep market] loan earnings = transaction price of funds* (i. E. Interest rate)/365* buyback days — formalities fees
[market] borrowing gains = transaction price of funds* (i. E. Interest rate)/360* buyback days — formalities fees
Three. Very expensive
There is no need to worry that the interest earned will not offset the fees. The repurchase of national debt, although at a fee, is low. On a rough basis, about one in 100,000, per day。
4. Funds received
The date of entry of funds is calculated on the basis of the period of sale and is essentially based on the t+1 entry rule. However, if a cash withdrawal is to be made, it will require t+2 funds to be used。
V. Types of repurchases of national debt
The city and the city have a repurchase of the national debt, divided by duration, into nine periods of one, two, three, four, seven, 14, 28, 91 and 182。
6. Amount of participation
The minimum participation rate in the city has increased by a factor of $100,000, and the minimum participation rate in the city has increased by a factor of 1,000。
How do you order the money? Gather or split
The interest rates for repurchases of national debt vary over time, and it is difficult for investors to guarantee that interest peaks can be obtained at one time. Thus, for large sums of money, a split order would be a good way to avoid the problem。
For the majority of investors, repurchases of national debt can be used as a compensatory exercise, and idle inflows of domestic debt can increase the utilization of funds and yield gains during holidays。
Carnation: there's a risk to managing money and careful investment
