Since the end of February, the risks of high-quality private real estate enterprises such as Longguang holdings have also dragged many funds and individual bank financial products into the “quagmire”. According to the data of enterprise early warning communication, according to the disclosed data by the end of 2021, there are 23 asset management products of “stepping on thunder” Longguang bonds, resulting in the decline of the net value of some asset management products. However, due to the different proportion of positions, their impact and impact are also different.
Recently, another real estate enterprise rongchuang also suffered a sharp decline in bonds, and some asset management products unfortunately “stepped on thunder”. Rongchuang should have cashed the resale funds and interest on April 1 on the resale date of “20 rongchuang 01” and on April 2 on the interest payment date of “21 rongchuang 03”. However, it announced on Friday that it was unable to raise the full amount of interest payment funds. At present, rongchuang is looking for the extension of the two bonds.
more than one fund “stepping on thunder” net value fell
The bond “21 dragon control 03” issued by Longguang holdings last week ranked first in the decline list of credit bonds with a weekly decline of 71.5%. In fact, Longguang Holdings has been plagued by negative public opinion since last month. After the release of the bond extension plan this month, investor confidence has been further impacted, and many bonds have fallen sharply since the end of February.
due to the bonds issued by “stepping on thunder” Longguang holdings, the net value of some funds fell rapidly . The fourth quarter report of Hongde Hongfu hybrid fund in 2021 shows that Hongde Hongfu hybrid fund held 400000 “19 dragon control 04” at the end of 2021, with a fair value of 39.648 million yuan and a position ratio of 4.82%. 19 dragon control 04 is the second largest bond position of the fund. The market data show that “19 dragon control 04” has fallen sharply since February 24, 2022, from 81 yuan to 23 yuan. The latest price on March 24 was 32 yuan, a sharp drop of 60.5% in the past month.
The cumulative net value of A-Shares of Hongde Hongfu has also fallen sharply since the end of February. As of March 23, the net value in the past month has fallen by 4.26%. However, Hongde Hongfu hybrid fund held 16% of the stock position at the end of last year. The sharp decline in the stock market since early March may also exacerbate the fluctuation of net value.
Another fund, Great Wall Jiuwen bond fund, also holds bonds issued by Longguang holdings, but holds few. At the end of 2021, it held 1000 “18 longkong 05”, with a fair value of 98600 yuan, accounting for 1.91% of the net asset value of the fund. The trend of “18 dragon control 05” is similar to that of “19 dragon control 04”, which has also fallen sharply since February 24. From the closing price of 81 yuan on February 23, the lowest fell to 22.05 yuan, and closed at 31 yuan on March 24, down 61.7% in the past month.
Due to the small holding of “18 dragon control 05”, the net value of a share of great wall Jiuwen bond fund fluctuated slightly, but the range was not large. As of March 23, the net value fell by 0.63% in the past month.
Due to the failure to obtain the latest positions and all positions of these funds, it is unknown whether the net value fluctuation of these funds is affected by other factors.
There are more funds holding the priority of asset-backed securities with the balance of house purchase of Longguang holdings. Bank of China fund alone has seven funds holding bonds or ABS issued by Longguang holdings at the end of 2021, and Anxin asset management also has four products holding bonds or ABS issued by Longguang holdings at the end of 2021 However, even if it holds the priority of Longguang holding’s house purchase balance ABS, it is inevitable to fall sharply when confidence collapses. Taking “longkong 09 excellent” held by more asset management products as an example, according to DM data, the transaction data from the Shanghai fixed income platform shows that since the beginning of March, the net transaction price of “longkong 09 excellent” has fallen rapidly from more than 90 to more than 40, the lowest to more than 20, and the current price is supported by more than 30 platforms.
Recently, rongchuang, a real estate enterprise that is promoting the extension of two bonds, also experienced a sharp decline in bonds, and many asset management products “stepped on thunder”. For example, “20 rongchuang 01”, which is currently seeking extension, a detailed list of small and medium-sized investors obtained by the reporter shows that “XX trust No. 6” and “National Trust sailing No. 11” appear in the list of holders, and many private equity funds also hold “20 rongchuang 01”. However, since March 18, “20 rongchuang 01” has plummeted, from 99.1 to 36.5 yuan. Although it has rebounded recently, it is still more than half cut.
In the fourth quarter of last year, some funds were suspected of “stepping on thunder” rongchuang. For example, Minsheng Jiayin Huixin fixed bond held 300000 “20 rongchuang 02” at the end of September last year, with a position ratio of 8.79%. The price of “20 rongchuang 02” continued to fall in October and November last year, and the net value of Minsheng Jiayin Huixin dingkai bonds also fell sharply in the fourth quarter of last year.
bank financial products are also “successful”
As a high-quality real estate enterprise, the bonds issued by Longguang holdings were still the “pastry” pursued by asset management products last year, including CMB financial management, CCB financial management, Ping An financial management and other asset management institutions. At the end of September last year, financial products invested in the bonds issued by Longguang Holdings (including ABS).
However, by the end of last year, the bonds issued by Longguang holdings had disappeared from the top ten positions or the top five bond positions and the top ten ABS positions of many asset management products. The reason for the disappearance may be the reduction of positions or selling. By the end of last year, there was only one financial product issued by China Minsheng Banking Corp.Ltd(600016) and among the disclosed positions were bonds issued by Longguang holdings. Since the asset management products only disclosed the top ten positions or the top five bond positions and the top ten ABS positions, it is not excluded that the financial products issued by other banks or financial companies also held bonds issued by Longguang holdings, but they do not need to be disclosed due to their small holdings.
China Minsheng Banking Corp.Ltd(600016) “Boying Xinzhu solid income two-year fixed open financial macro No. 11” product’s fourth quarter report in 2021 shows that “20 dragon control 02” ranks the sixth largest position of the product, with an amount of 54.712 million, accounting for 5.28%.
It is not known whether the product adjusted its position in “20 dragon control 02” in the first quarter of this year. However, the latest disclosed net value of the product on February 21, 2022 was 1065457, a slight decrease of 0.65% compared with the beginning of the year.
how to deal with the “stepping on thunder” of funds and financial products
Compared with the possibility of “turnover” after the decline of stocks, usually the risk of bonds will have a great impact on the financing of the bond issuer in all aspects. Even the debt extension will make the outside world doubt the solvency of the bond issuer. The bond issuer is easy to get into trouble. Therefore, the risk of bonds is usually easy to cause large losses.
For investors, if the issuer of the position bonds disclosed by the fund is found to have risks, even if the net value of the fund has not decreased significantly, they can try to redeem first to avoid risks. Due to the small trading volume of some bonds, the valuation of not all bonds will be adjusted in time. When there is no transaction or the transaction is not active, sometimes the fund company needs to “manually” adjust the valuation.
For example, after other bonds issued by Longguang holdings began to fall sharply at the end of February, “19 longkong 01” did not have many transactions. Yuanxin Yongfeng Fund Management Co., Ltd. chose to “manually” adjust the valuation and announced that the valuation price of “19 longkong 01” held by the company’s funds would be adjusted from March 7. For investors, if they redeem before March 7, they can redeem according to the valuation level before adjustment, which can appropriately reduce the loss.
If the proportion of risky bonds held by asset management products is not high, even if there is a loss, it will not have much impact, so investors do not need to rush to redeem. For example, if the proportion of positions is only 1%, even if the total loss of 1% is only “devouring” part of the income, it will not have much impact on the principal. In this case, there is no need to rush to redeem. The manager of asset management products may also sell risky bonds in time to control the risk.
From the perspective of avoiding losses in advance, investors can observe whether the bonds with heavy positions in asset management products involve the varieties with high “Thunderstorm” risk in the current market. For example, the bonds of private housing enterprises belong to the varieties with frequent risks since the end of last year; And observe whether the external rating and implicit rating of heavy position bonds have been continuously downgraded by international rating agencies. If they are continuously downgraded, it will have a great impact on the company’s financing, which is easy to further trigger risks.
