Factors Affecting Credit Spread Of Enterprise Bonds

The issue of enterprise bonds is a major enterprise financing activities, whichplace a very important part in the capital market. As an indispensable part in thecapital market, enterprise market places the media function such as financing andresources allocation. After years of development, our enterprise bond market turnedmore mature, and the circulation and distribution quotas have grown very fast. As akind of investment and financing tools, enterprise bonds will catch more attention inthe future. There is no doubt that investors care about their benefit. For the interestease the influence of the term structure of interest rates, therefore, compared with theprice, the interest gives a better view of the benefit.Hence, the paper studies the factors that influence the interests of the enterprisebonds, and puts an emphasize on the rate of credit. In this paper we stated out somefactors which influence the issue of the enterprise bonds by the credit risk pricingtheory after the studying of some materials. We started from the bonds, and used theissue from Sept.2007to May2011, for the aim of giving some suggestions to theinvestors and got the following conclusions through an empirical research. We foundout that the interests of bonds would be inflected by factors such as credit rating, issuesize. Among them, the credit rating has a most obvious influence. Finally, we set upsome suggestions for the bond market and credit rating market.