Case Study On Default Of Kaidi Ecological Bonds

Since the zero default rate of bonds was broken in 2014,default events occurred frequently in 2015,and the main body of risk occurrence has gradually spread from private enterprises to state-owned enterprises or even central enterprises.A wave of defaults in the domestic bond market began in 2016.Default involving 34 issuers,79 bonds substantive default.In 2017,there were a total of 35 defaults with a default amount of 33.7 billion yuan.Data show that as of May 2018,the amount of bonds in default has reached 15.104 billion yuan,an increase from the same period in 2016 and 2017.There are more and more credit risks in the bond market,and private enterprises have become a high-risk place.Under the background of default condition of the market,based on the theory of debt default at home and abroad is introduced and the concept of financial risk,is cady ecological 2018 bond defaults on case analysis,based on the analysis of the reasons for the default as well as the impact of a profound analysis,makes every effort to found in a single case study default the commonness of the enterprise,and gives the opinion of the risk prevention,ensure smooth development of the bond market,bond investors guaranteeing the interests of the individual.The first part of this paper introduces the research background,purpose,research status at home and abroad and research innovation.The second part discusses the relationship between financial risk and bond default.Financial risk related concept introduction.The concept of debt default and financial risk are described.The third part reviews the company profile of kaidi ecology and the event process of bond default.The fourth part analyzes the causes and economic consequences of kaidi’s ecological default.The fifth part is based on kaidi ecological default case summary case enlightenment,the sixth part of the full text of the summary and put forward policy recommendations.The result of the case study is the failure of kaidi ecological restructuring.In the past,blind expansion led to excessive debt scale and excessive funds occupied by related parties,which resulted in poor asset liquidity,questionable profitability and solvency of the enterprise,and weak ability of sustainable operation in the future.This is the root cause of corporate bond defaults.