Research On The Influencing Factors Of The Interest Rate Of Local Government Special Bond Issuance

The special bonds of local government are a special type of bond in local government financing methods.Their funds are mainly invested in public welfare projects with long return periods and low returns,relying on government fund income and project special income to pay principal and interest.The special bonds of local government have the characteristics of low issuance costs and diversified risks,which makes them play an increasingly important role in the construction of local infrastructure and public services,and are gradually replacing some of the financing functions of the original local government financing platform.Local government special bonds are different from other types of bonds in the market in terms of supervision methods,issuers,issuance pricing and repayment methods.In order to have a more systematic understanding of local government special bonds,this article defines the concept of local government special bonds,The approval process,the status quo of issuance,the issuance of interest rates,etc.were summarized,and through comparison with other bonds,it was found that the issuance rate of local government special bonds is generally low.An analysis of the status quo of the issuance of local government special bonds and the issuance interest rate found that the issuance interest rate of local government special bonds is generally low,and that there are some local government special bond issuance interest rates in 2015 and 2016 that are higher than the same debt repayment period of the same period The rate is even lower.Therefore,the research focus of this paper is what factors are considered when determining the issuance rate of local government special bonds,and whether the current issued interest rates of local government special bonds effectively reflect these factors.Therefore,on the basis of summarizing the existing research and combining the principles of local government special bond issuance pricing,this paper analyzes the potential influencing factors of special bond issuance interest rate from both internal and external perspectives,determines explanatory variables and constructs a measurement model.Then select the data of 2751 local government special bonds issued between 2015 and 2019 as samples,use EViews software to fit the constructed measurement model,and analyze the final model fitting results.The results show that the local government’s special bond issuance interest rate does not effectively reflect the local government’s financial situation and debt burden.In order to verify whether the current local government special bond issuance interest rate has the problem of interest rate suppression,local government fiscal deposits are selected as proxy variables to build a local government special bond interest rate suppression model.The analysis model fitting results show that the local government special bond issuance interest rate and There is a significant negative correlation between fiscal deposits,indicating that there is an invisible underpricing in the issuance of local government special bonds.Finally,on the basis of empirical analysis,this paper summarizes the main problems in the issuance of local government special bonds,and puts forward targeted policy recommendations to promote local government special bond market pricing.