Analysis Of The Default Risk Of Credit Debt Of Private Enterprises

The bond market is an important component of financial markets and one of the main ways of direct financing.With the rapid development of China’s bond market,the risk of market default is constantly exposed,forming a frequent default incident,the scale of default is expanding,private enterprises have become the market environment in the hard-hit areas of default.Under this background,it is of great significance to analyze the causes and risk of default of credit bonds to correctly identify and effectively prevent the risk of default.This paper selects the typical case with market and industry representativeChengdu Techcent Environment credit debt default event as the object of analysis,to study the default risk of China’s private enterprise credit debt.This paper combs the literature from the factors of bond default,the risk measurement model of bond default and the risk management of bond default.Following the basic method of case analysis,this paper introduces the basic situation and debt structure of the defaulting subject,and reviews the development course of Chengdu Techcent Environment default event.From the macro-environment analysis,industry development analysis,corporate governance analysis,corporate financial analysis of the four aspects of Chengdu Techcent Environment credit debt default case analysis of the causes of default.The Z-score model and KMV model were selected to measure the risk of default,and the Z value of Chengdu Techcent Environment and its rating results and the default distance were analyzed.Finally,the paper draws the suggestions and enlightenments of effective default risk from three levels: supervision,private enterprises and investors.The study found that external factors such as banking,industry development and market supervision failure,corporate governance factors such as corporate governance such as corporate management strategy,major shareholder behavior and internal control mechanism failure,as well as corporate financial factors such as excessive debt,unreasonable debt term structure,insufficient operating capacity and declining profitability,are all important factors in credit default.The Z-score model and KMV model can better measure the financial risk and the distance of the enterprise default,and better reflect the risk of the enterprise’s default.Finally,it puts forward some suggestions for strengthening behavior supervision,perfecting information disclosure system and improving supervision system in many ways,for private enterprises to comply with the macro environment and industry development trend,strengthen self-discipline consciousness and strengthen internal control mechanism,optimize financing structure and improve wind control,and for investors to enhance risk awareness,enhance risk identification ability and pay attention to risk tracking,enhance investment income and other effective credit debt default risk prevention recommendations.