A Case Study On Bond Default Of Interest Source

After the recovery of the securities market in 1981,after 30 years of vigorous development,China’s bond market is growing,and in 2019,China has become the second largest bond market in the world.In 2019,there are 297 listed companies in China with a total default amount of 313846 million yuan.This year,the bond market ushers in the peak of payment,and the number and scale of bond defaults are still high.By the end of 2019,there were 125 default bonds of private enterprises,accounting for 94% of the total number of default bonds in the whole year.At present,the implementation of "three go and one supplement" policy in China makes it difficult for business enterprises to refinance.In addition,the private enterprises themselves are small in scale,weak in pressure resistance,poor in liquidity,short and fragile in capital chain,which makes the private enterprise bond default frequent.In this industry background,this paper selects Interest Source Group as the case study.This paper uses case analysis,literature analysis and financial ratio method.Firstly,it introduces the basic situation and main business of interest source group and combs the process of Interest Source Group bond default,forming the research background.Liyuan issued "14 Liyuan debt" on September 22,2014.On September22,2019,Liyuan failed to pay its debts due and incurred material breach of contract.Secondly,it analyzes the internal and external causes of Interest Source Group bond default.First,it is difficult to narrow the financing channels due to the impact of macro-economy;second,there is an unreasonable investment strategy for the construction of Shenyang Liyuan project,a subsidiary;third,the poor supervision of the Underwriters leads to a serious predicament of cash outflow of the company,multiple debt defaults,and from this case,it is found that China’s private enterprise bond defaults Common problems.Finally,this paper puts forward some countermeasures for the above reasons:first,the company should adjust its business strategy and investment strategy in a timely and reasonable manner according to the changes of economic situation,avoidblind investment from the perspective of the company’s actual ability,and improve the company’s operation and management ability,Interest Source Group project operation mode should be more cautious,and daily projects are the basis of the enterprise’s survival The company should also improve the financial early warning mechanism,improve the refinement level of the company’s risk management,and improve the awareness of risk prevention;secondly,it should provide support for the financing of private enterprises from the national level,so as to ease the current situation of financing difficulty and financing cost of private enterprises;thirdly,it should improve the bond regulatory system,and do a good job in the bond market supervision,including issuance supervision and follow-up supervision,and the rating agencies should provide more High quality rating report,at the same time,investors should invest rationally.Finally,I hope that through the study of the case of Interest Source Group,I can provide more suggestions for private enterprises to prevent bond default.