So dual-low convertible bonds should be understood this way, evil cultivators are indeed evil.

Recently, I was chatting with Brother Xie Xiu, and his strange ideas and bizarre thoughts almost blew my mind. Not to mention, he explained dual low convertible bonds like this: only those with a price below 120 yuan and a premium rate below 20% are truly dual low, with the 120 yuan threshold being a hard indicator. The traditional 130-30 is a joke. For example, if you have a stock priced at 10 yuan, and you do T+0 trading to bring it down to 8 yuan, then it hits a limit down, and after half a year of effort, it’s gone. If you want to break even without losing, you need to bring your cost to zero—that’s extremely difficult. But if you hold a 120 yuan convertible bond and bring its price down to 100, then if it falls further, the profit increases as it approaches maturity. If it rises, you can sell directly for profit. Moreover, if you buy a 104 yuan convertible bond and bring the cost down to 80, you’ve achieved a historic profit. Looking at past major dips, how low can a convertible bond go? So, the bottom line for dual low is the stock’s limit up or down, which is the true dual low.

Do you think his approach makes sense? Anyway, I feel it’s quite reasonable. Such targets, especially those rated AA or above, are very rare. He also discussed many details and risks of the game, even providing quantitative standards. The scope is too vast to go into detail here.

Additionally, his understanding of hybrid funds is also astonishing. The term “hybrid fund” is something he created himself. The betting strategies involved are too complex to explain here.