No you're still not understanding what the hedge is exactly.
The hedge is permanent and lasting for the whole 7 years. The hedge goes both ways! That's the part that constantly is going over your head.
The hedge the shorts provide for the bonds is also a hedge the bonds provide against the shorts.
Please mate please for godsake we have to get past this part because it's mainly irrelevant. You simply must move past this $9.18 and $12~ thing in your head. I can't keep saying this again and again. But it's not the point of concern you are saying it is.
No insto cares about this point. Even the note holder doesn't care about this.
MOVE PAST IT OK. Move past it!!
Get to the point of understanding the corporate bond market itself and how the bonds are constantly valued on the SGX. This is what they're interested in. If you can move your focus onto this particular aspect, then you can begin to understand the process further involved.
If you can't do that, you're going to be stuck in the world you're in now which honestly doesn't exist. Whereby you think the CN buy in price and conversion price plays a role in further shorting. They don't. And if you want to further your understanding of the reality of downward pressure on the price, then you have to accept this.
It's honestly not going to change your perception of the influence of the instos on the share price. All it will do is free you of this $9.18 bullshit. Because it doesn't exist.
Your TA and noticing pushdowns at $9 a couple times has locked you into 100% belief there is something going on at this price. It's literally just a coincidence.
Z1P Price at posting:
$7.09 Sentiment: Hold Disclosure: Held
(20min delay)