Group 1 - The report addresses the cost-effectiveness of convertible bonds in the current market environment for "fixed income +" products, highlighting the challenges faced by traditional low-price strategies due to scarcity and high valuations [6][7][11] - Historical backtesting shows that the "pure bond + convertible bond" combination has consistently outperformed the "pure bond + dividend" combination since 2020, with a notable annualized return of 5.87% for convertible bonds compared to 1.06% for dividend combinations as of October 10, 2025 [6][8][28] - The scarcity of low-priced convertible bonds is evident, with only 10 bonds priced below 110 yuan and less than 20% below 120 yuan as of October 15, 2025, indicating limited operational space for traditional low-price strategies [11][12] Group 2 - The report recommends shifting the focus of convertible bond allocation towards equity-oriented convertible bonds, which have shown better adaptability in various market conditions, particularly in a slow bull market [16][20][30] - Historical performance indicates that equity-oriented convertible bonds provide significant excess returns during upward market trends while maintaining manageable volatility [20][28] - A dynamic Delta management strategy is proposed to optimize risk-return profiles by adjusting the Delta exposure based on market trends, enhancing performance during market upswings and controlling drawdowns during downturns [23][26][30]