The Risk Analysis Of Yi Zhang Rural Commercial Bank’s Bond Investment Business

In recent years, bond investment and trading as banking institutions’ important business assets, has characters of high safety, liquidity and profitability, favored by the market, has made great progress, the bond market is expanding, the bond market is gradually showing "bull" pattern, the Bond Index, the New Bond index rising.According to the latest annual report of the Central Securities Depository Trust &Clearing Corporation disclosed that in 2014, various types of bonds were issued 11.87 trillion yuan in the annual bond market, compared with 2013 increased 3.17 trillion yuan, an increase of 36.47%. Meanwhile, the total amount of the bond market reached35.64 trillion yuan, an increase of 6.16 trillion yuan over the end of 2013, an increase of 20.9%. At the same time, bond investment business is closely related with macroeconomic trends and market volatility, with the rate economic growth is down,the real estate market downturn, the rapid development of Internet banking, deposit interest rates go up and a series of challenges from the expansion of the business environment to increase, small bond Investment banking institutions business is facing many potential risks.Firstly, this paper using the theory of bond investment, building a theoretical foundation for the full service: the major risks facing the business category of bonds,bond investment portfolio theory and risk management theory bonds. Then combine Yi Zhang Rural Commercial Bank’ own development and facing regulatory environment, analyzes the development of Yi Zhang Rural Commercial Bank’ bond investment, found that the existing Yi Zhang Rural Commercial Bank’ low rate of return on assets, bond investment business there is a low proportion low yields,product structure a single issue. Then, elaborated on the management of Yi Zhang Rural Commercial Bank significance of bond investment business.After analyzing the basic problems and limitations of Yi Zhang Rural Commercial Bank’ bond investment, combined with Chinese bond market environment background, as well as some of the problems existing in Chinese bond market, in-depth analysis of some of the major Yi Zhang Rural Commercial Bank’bond investment risk exist including a lack of initiative and investment strategy because the market rate pricing simple and extensive market risks faced; for bond investments and asset liability management out of touch, the ability to obtaininformation brought insufficient liquidity risk; imperfect because the organization,management scientific and operational risk control processes behind caused. Finally based on Yi Zhang Rural Commercial Bank’ risks, put forward specific suggestions in order to improve the effectiveness of the bond investment business and the promotion of small and medium sized banks to better sustainable development.