Credit Risk Management Of Private Enterprises Bond Defaults

2014 is the starting point for the rapid development of China's bond market.The bond financing environment is loose,making 2014~2017 the peak period for China's credit bond issuance.At the same time,with the high-growth bond issuance and stock bonds,China's credit bond default incident also spurred growth,and entered the cycle of default in 2016.However,since 2018,due to a series of macro factors such as macroeconomic downturn,regulatory tightening,and deep deleveraging,the financing environment of private enterprises has become more and more serious,making the bond default tide since 2018 appear different from previous years: The newly added default entities are mainly private enterprises,among which listed private enterprises account for the majority;The types of default bonds are mainly inter-bank bond financing instruments,of which short-term financing bills(including ultra-short-term financing bills)account for the majority;The initial ratings of default bonds are AA and above,and all of them have a cliff-type downgrade after credit risk,that is,the initial rating of default bonds is artificially high.In order to accurately identify the current credit risk factors of private enterprise bonds in China,and to propose the management recommendations for the credit risk of private enterprise bonds,this paper compares and analyzes the data of the issuance,stock and default of China's credit bond market in the past five years.The unique characteristics of the bond default tide in the past year,and further statistics and analysis of the default of private enterprise bonds,selected three representative enterprises in the industry for comparative analysis,in order to identify the credit risk of private enterprise bonds since 2018.Management provides effective advice.This paper takes case analysis as the research method and selects Wintime Energy Co.,Ltd.to conduct research on the identification and management of default credit risk of private enterprise bonds.First,through the analysis of the development status of China's credit bond market,it is concluded that the negative bond events since 2018 have different characteristics from previous years.Secondly,in view of the unique characteristics of bond defaults since 2018,Wintime Energy Co.,Ltd.was selected as case enterprises.From the two aspects of business strategy and financial situation,the paper analyzes the factors that identify the credit risk of private enterprise bonds,including macro industry factors,business operation and strategic factors and financial factors.Based on the comparative analysis of multiple cases,the risk factors of private enterprise bond default are summarized.This paper proposes privately from the perspective of the main stakeholders and managers of private enterprise bond credit risk(regulatory layer,rating layer and issuer).Suggestions for credit risk management of corporate bonds: At the regulatory level,it is necessary to enhance the consistency among regulators,strengthen the effectiveness of bondholder meetings,reasonably control the setting of cross-default clauses,and promote the operation of private enterprise bond financing support tools;In terms of the rating layer,the independence and standardization of rating agencies should be strengthened,the timeliness and early warning functions of rating opinions should be strengthened,and the dual rating system should be introduced.In terms of issuers,attention should be paid to the feasibility and timeliness of development strategies,and the choice of structured Financing methods maintain corporate liquidity,grasp macroeconomic changes and policy orientation,and establish and improve risk identification and early warning systems.