| The default of bond is the normal in capital market and there is a clear link between default rate of bond and fluctuation of economic prosperity.As the world’s third-largest bond market,Chinese credit debt has expanded rapidly in recent years.However the bond default hasn’t occurred before 2014.In fact,due to the "rigid payment",the implicit guarantee makes bond default have never occurred in Chinese enterprises especially state-owned enterprises.Although in 2012 there were series of bond default risk events in bond market,but in the end because government and bank bailed them out,those bonds got redeemed.These events have strengthened the investors’ psychological expectations of "rigid payment" and made them ignore the credit risk,which is very detrimental to the long-term healthy development of the bond market.Chinese economy is in the new normal period,the government is promoting the supply-side reform actively,the release of credit risk is accelerating."Rigid payment" is also gradually being broken.As a result of failure of strategic transformation to new energy industry,the credit conditions deteriorated,finally leading to its bond default,state-owned Baoding Tianwei Co.,Ltd.became the first bond default enterprise of state-owned enterprises and inter-bank bond market.Spread of default risk to the state-owned enterprises means that credit risk is intensifying.Based on this typical case which shows the whole process of the credit risk from accumulation to outbreak,the paper takes it as a case to study how to fully and effectively cope with the increasing credit risk of bond market.First of all,through reviewing and carding the default process of Tianwei Group’s medium-term notes "11 Tianwei MNT2",and combining the deep analysis of macro-environment,industry cause,company cause,parent company and its underwriter cause these five aspects,we can get the real causes.On this basis,the author puts forward the proposal of comprehensive and effective coping approaches to credit risk.The coping approaches should proceed from five levels-the issuer,investors,credit rating agencies and inter-bank bond market,conduct credit risk control,risk prevention,risk early warning and supervision.The paper is aim to help the bond market safely get through the release period of credit risk and promote the healthy development of the bond market. |
