China Zhongji Investment team decodes the password to high-yield debt investment
In May 2019, based on macroeconomic analysis, asset allocation, and judgment of opportunities in the high-yield debt market, China Zhongji Investment launched its high-yield debt investment sector. In the nearly 18 months since, the high-yield debt team's products have maintained an absolute return of around 50%.
Today, Shen Xiao, head of high-yield debt investment at China Zhongji Investment, will share insights into China Zhongji Investment's investment logic in high-yield debt and reflections on future development.
High yield with relatively controllable risk
Over the past year, China Zhongji Investment's high-yield debt investment logic has been confirmed and further refined, and a wider range of profit models have been gradually explored. Currently, China Zhongji Investment adheres to three basic strategies:
1. Strengthen the concept of portfolio management
High-yield debt is a typical probability game. The so-called "excess coverage of yield over risk" needs to be achieved through diversification and accumulation of quantity. Moderate diversification and portfolio management are consistently applied basic methods, avoiding excessive concentration of holdings.
2. Emphasize both allocation and trading
To date, the proportion of bonds held to maturity is not high. Swing trading often yields better results, avoiding "reveal risk" and buying time. For low-risk assets (relatively low-risk within the high-yield category), there is a trading record of achieving a 6 yuan net price swing profit within a week. For deeply discounted bonds (full price below 30), there are occasional instances of doubling or even higher multiples within two weeks. For municipal bonds, especially PR corporate bonds, a riding strategy can effectively achieve swing profits.
3. Capture opportunities for "inefficient pricing"
Enrich product types and strengthen institutional cooperation
