Analysis Of Default Cases Of High Rated Bonds

In recent years,high rated bonds have frequently defaulted.Bond market credit rating is one of the risk early warning methods for enterprises to issue bonds publicly.It has the function of revealing bond investment risks to investors and facilitating investors to make investment decisions.The frequent defaults of high rated bonds caused a "crisis of trust" between investors and credit rating agencies.The main credit rating of Tsinghua Unigroup Co.,Ltd.has been maintained at AAA for a long time,and the bond rating issued by Tsinghua Unigroup Co.,Ltd.is also AAA.On november16,2020,the first domestic bond issued under the name of Tsinghua Unigroup Co.,Ltd.defaulted,and then a total of 9 bonds defaulted,involving a bond balance of nearly 14 billion yuan.High rated bonds still default,which has a negative impact on the development of the bond market and the credibility of rating agencies.Analyzing the reasons for the default of Tsinghua Unigroup Co.,Ltd.is conducive to the healthy and orderly development of the bond market,the better risk warning role of rating agencies,and the prevention of default risk in the business process.Firstly,this paper combs the relevant literature on the three dimensions of "bond default causes,bond credit rating,and preventing default risk",and improves the theoretical support for the analysis of default causes of high rated bonds based on "information asymmetry theory,credit rating theory,and principal-agent theory";Then,in the case description,it introduces the relevant situation,default process and subsequent disposal of the high rated defaulting entity Tsinghua Unigroup Co.,Ltd;Then,it analyzes the reasons for the default of high rated bonds mainly from the three aspects of the default subject,credit rating and supervision,and finds that Tsinghua Unigroup Co.,Ltd.has many problems in the business process,such as frequent capital mergers and acquisitions,aggressive investment strategies,excessive debt scale and so on;There are some problems in the credit rating industry,such as nonstandard rating methods,underestimated credit risk,falsely high rating grades,and centralized rating grades;In addition,there are such problems as unreasonable issuance system and unclear regulatory body.Finally,in view of the above problems,this paper puts forward some suggestions to avoid the risk of default.For bond issuing enterprises,they should choose their own development strategy and control the reasonable debt scale according to their own actual situation;The credit rating industry should standardize the use of rating methods to improve the ability of risk assessment;For supervision,it is necessary to improve the issuance system and implement the supervision subject.