May's CPI data can be said to be expected, in May consumer price index rose 3.1%, more than 3% of the warning line, hit a 19-month high. The current one-year commercial bank deposit rate is 2.25%, compared with the CPI index is equivalent to shrink by 85 basis points. In other words,glue stick under the current inflation level, the money in the bank, the gains can not compensate for the losses caused by inflation.
Overseas, inflation-indexed bonds is the most basic tool to fight inflation. Inflation-indexed bonds,glue gun the basic principle is: the bond principal and interest payments due to changes with the inflation index adjustment. If the United States, inflation-protected bonds TIPS (TreasuryInflationProtectedSecurities) is one of typical products, TIPS greatest feature is its principal and interest according to changes in CPI index adjusted periodically. Institutional investors tend to buy such products, and apply to life insurance, retirement accounts, hedge funds and going, so as to provide individual investors a way to avoid the risk of inflation.
Although there are many domestic experts, should develop inflation-indexed debt products, but the current market, yet no plans to launch the product. Therefore, investors need to be able to find their own income with the "rest" dance of the investment.
Recently was introduced several products, with the proceeds already with the concept of adjustment, particularly the bank a "step by step to win" financial products, not only by way of a sub-interest bearing, and product revenue will be With the changes in market interest rates for occasional adjustments. At the same types of financial products, still belong to the first case.
Sub-interest bearing "step by step to win."
It is reported that ICBC has launched a "step by step to win" is a flexible period-based financial products, but with other types of products compared with the "step by step to win" the proceeds will be incremental, as investors holding period for the different, the bank for this product is "sub-interest-bearing" approach. In other words, according to the number of days an investor holds the product into a 6-speed is expected to an annualized rate of return, holding the number of days more, the higher rate of return. ICBC announced the current product status for the expected rate of return: holding product days 1-29 days is expected to an annualized yield of 0.36%, from 30 to 89 days is expected to yield annualized rate of 1%, from 90 to 179 days is expected in rate of return of 2.2%, from 180 to 269 days is expected to yield annualized 2.5%, holding from 270 to 364 days is expected to an annualized yield of 2.8%, from 365 to 539 days can be expected to yield annualized 3.3 %. Can see that the various stages of this product yields compared to the same period of the deposit interest rate has some advantages.
Investment in "step by step to win" two advantages of this type of product is good for both investors to cash management, wealth management products as a flexible term, "step by step for the win" will not have a fixed financial period, investors can at any time according to their use for capital redemption of products, current "step by step to win," opened the day the redemption, the redemption features usually can book appointments in the redemption order is issued, the funds T +2 working days can be credited into account; At the same time, investors with the proceeds to invest in the extension period, "corresponding rise." In addition to income on bank deposits have advantages over, the section of interest on ways to resolve the issue of lack of flexibility in time deposits.
In the "step by step to win" product design, there are two more useful features are also worth attention from investors. ICBC's financial experts say the "step by step to win" the redemption, the bank will be based on "last in, first out" principle product of redemption, to maximize return on investment. For example, customers in the June 21, 2010 100,000 copies of purchase confirmation "step by step to win" financial product, August 31, 2010 50,000 copies of a purchase confirmation. If the December 30, 2010 he confirmed the redemption of 100,000 copies, Well, according to "last in first out" principle of redemption, redemption of shares, 5 million copies of the existence of the number of days to 122 days, the corresponding rate of return of 2.2%, other 50 000 survival days were 19.3 days, corresponding to yield of 2.5%.
In addition, holders of the schedule of "critical value" around, investors can properly wait to raise revenue. Holding the product 89 days of the expected annualized rate of return of 1%, while the holders of the expected 90-day annualized yield of 2.2%, every other day between the annualized yield on the 1.2% difference.
In addition, the "step by step to win" the product design, the expected annualized rate of return will change with market interest rates adjust to market interest rates ICBC and financial operation of the ad hoc adjustment of Ge profile is expected to yield annualized rate.
QDII fund floating rate bonds.
Investors within the platform through QDII fund products for overseas investment in floating rate bonds, floating rate debt products such coupon payment is based bond market when the benchmark reference rate, such as the London Interbank Offered Rate LIBOR, Australian Financial Markets Association bank notes refer to changes in interest rates BBSW changes, select the reference rate changes in the standard as the products are different, floating rate coupon bonds will gradually phase change. When market interest rates increase, bond coupon payments are higher. Otherwise it would be reduced accordingly.
At present the territory of China Citibank has 5 dollar floating rate debt product launch, distribution companies, including Morgan Stanley, Citigroup, Wakeweiya banks and finance companies of General Electric Australia. Morgan Stanley issued FMS32 example, the bond's coupon is 3 months bank notes the Australian Financial Markets Association as the benchmark reference rate 3MBBSW interest rates, and in its basis with 38 basis points (a basis point is equivalent to 0.0001 ), the bonds pay interest each year frequency of 4 times, that is, on a quarterly basis for payment of interest, investors will return to gains as the level of 3 months BBSW be floating. Moody's current bond rating for the A2, S & P's rating of A.
We can see through concrete examples of changes in Australian dollar floating rate bond. According to relevant data, in the last coupon payment date, 3 months BBSW the level of 3.8129%, then the level of the interest payments on the basis of 3.8129% plus 0.38%, which is 3.8167%. If the next interest payment day, the Australian dollar's interest rate rise, the level of 3 months BBSW 4%, then the bonds pay interest rates of this period is 4.38%; if Australian interest rates fell, only 3.5% then this period is 3.38% coupon rate, coupon bond proceeds will be paid on the interest payment to the investors account.
Is not difficult to see that in the process of rising interest rates, investors buy such bonds, income can rise in interest rates and floating; the other hand, if interest rates fell in the channel, yields will be lower there. In extreme cases, if the benchmark interest rate close to 0, then the investment gains on floating rate debt is very low.
Currently at appreciation of the Australian channel, not only exchange rate, Australian interest rates rise, so for this currency for floating rate bonds are favorable factors. But for domestic investors can not ignore the risks of this product, when the currency depreciation, lower interest rates, the investment principal and earnings are subject to a double loss. Therefore, the observation of the operation of the currency movements is especially important for investors.
The current United States dollar floating rate debt for several investment products to set the threshold to 2 million Australian dollars, General Electric Company's floating rate debt of Australia's financial investment threshold was 50 million Australian dollars, is relatively high. The cost of the product, including the purchase fee is 1.5% of investment (investment less the amount of 50 000 Australian dollars) and 1% (the amount of investment more than 50 000 Australian dollars), redemption fee of 1% of the amount invested, the product of the year management fee is 0.25%.
Classification fund floating rate terms.
Fund products in the classification part of the stability of earnings, there are some products set the floating interest rates, investment in Fenjijijin of the share, is expected to do as floating rate bonds, with benchmark interest rate Jichu profit.
A typical product is the League of Nations An Shuangxi A, which is currently on the market less risky, relatively high yield grade fund shares. In the course of the operation, two dual-Hei Hei A share and B share ratio of 4:6 agreement. Fund prospectuses provides dual-Hei A share of the agreed annual rate of return of the one-year deposit interest rate plus 3.5% bank. A share of Twin Jubilee which in return agreed a one-year bank fixed deposit interest rate refers to "the fund contract" entered into force on the date or the day after the Bank of China announced a date of conversion and implementation of financial institutions by the entire one-year overall survival take benchmark interest rate. The current one-year bank deposit rate of 2.25%, the two-Hay A, to achieve the agreed annual rate of return 5.75%. Can see that this provision is a floating rate terms, the conversion every 3 years in Japan, the coupon rate will float with the interest rate changes. Meanwhile, two Jubilee Fund, the principal amount of the conversion terms of their possible loss of principal security is also very good. Currently, the League of Nations An Shuangxi A, net 1.0110 (June 22 data)