A Case Study On The Default Of Bonds In Shenwu Environmental

In recent years,with the rapid development of the bond market,its credit risks are accumulating constantly,and the bond market is an important part of China’s financial market.The default of "Chaori bond" in 2014 became the first case of bond default in China,and the rigid payment was broken.Since then,bond default events have occurred repeatedly.Especially after 2018,China’s bond default has reached a historical peak in both number and scale,becoming the most concerned topic at present.In these frequent default events,the "16 environmental protection bonds" issued by Shenwu Environmental Protection co.,LTD have substantial default,which is the first default in China’s environmental protection industry and is highly representative.In this paper,the bond default event is taken as the object of study.Through case analysis,the reasons for the default of "16 environmental bonds" are deeply explored,and relevant conclusions and inspirations are drawn based on the analysis reasons.This paper first introduces the research background and significance,then the second part of the bond default related concepts and basic theory to some extent.The third part introduces the case in a basic way.It first expounds the basic situation of the case and the process of the bond default.Then it expounds the consequences caused by the default and how to deal with the enterprise after the default.The fourth part mainly analyzes why bond defaults occur from multiple levels,and focuses on the reasons at the internal level of the enterprise.Because Shenwu Environmental Protection Company fails to have a comprehensive understanding of its own operating conditions,it makes a wide range of investment,which brings certain risks to the enterprise’s operation.Although the default of bonds is partly due to internal reasons,the occurrence of bond defaults is closely related to the industry,the environment and supervision.Through the above series of analysis,it is found that Shenwu environmental protection bond default is affected by multiple levels,but the root cause is the company’s internal problems.The fifth part gives some enlightenment to relevant investors,enterprises and regulatory authorities.It is hoped that the analysis of this case can further enrich the research on bond default cases in China,which can help other enterprises and investors timely identify the default risk of enterprises and provide certain help for investors to enter the bond market in the future.