Case Study On Follow-up Preservation Measures For Bond Default

With the growing growth of China’s bond market,the credit risk of bonds accumulates continuously.After the first case of bond default in China’s bond market since 2014,the "black swan" has not been flying away,and the bond default event has become more frequent.By the end of 2017,there were 60 enterprises in the bond market in China,and 138 bonds broke up by debt,and the amount of default was 92 billion 400 million yuan,and the bond default had brought great adverse effects on the bond market of our country.The market parties have clearly recognized the need to face up to the occurrence of a bond default,and more importantly,what protection measures have been taken after the default of a bond,and how such measures have had an impact on the default,and whether the interests of the creditors have been guaranteed by subsequent safeguards.Through a thorough and systematic study of the follow-up preservation measures of bond default,this paper hopes to offer suggestions for proper handling of bond default and better guarantee of the interests of investors.In this paper,7 typical enterprises are selected from the main body of default as the research object.Through the analysis of the situation of the preservation measures and the multi-level measures,the paper reviews the independent negotiation mode or the judicial approach after the default of the bond.After that,we analyze the following measures of preservation,including the advantages and disadvantages of the evaluation methods and the effectiveness of the measures adopted by the participants.Found the problems and put forward suggestions for improvement.Through the analysis of the two aspects of the concrete preservation measures and the stakeholders,the following conclusions are drawn:first,the bond default event is inevitable,the issue after the issue is important,more importantly,after the bond default events should be actively responding to the interests of the creditors.Secondly,the adoption of subsequent guarantee measures for bond default is closely related to the qualifications of the issuers and the available resources.It is necessary to take into account the strength of the enterprise,the attitude of the local government,and the assistance of other parties to choose the independent consultation or to solve the problem through judicial channels.Finally,if we want to get through the debt default crisis smoothly,all stakeholders should do their duty and play a synergy role in promoting the solution of the problem.In order to cope with the low recovery rate of creditors and the wider market spread,all stakeholders should do their duty fully:the issuer should accelerate the handling of the problem,use the existing resources as much as possible,and the creditor should actively protect its rights and protect their legitimate rights and interests.The relevant parties should try the rescue properly and the rating agencies should fully cover them.To expose risks,the government needs to play a good coordinating role in giving timely guidance to deal with the default of bonds.