Study On The Financial Risk Of Yongmei Group From The Perspective Of Bond Default

Bond defaults have occurred frequently since 2014.When some companies defaulted on their debts,they had monetary funds on their books that were significantly higher than the default amount.Although China’s current state of market supervision and management mechanism is still not perfect,with the economic development of China’s capital market has significantly increased,in recent years more and more company with combination of the deposit,because the savings and loan combination of enterprise financial risk is becoming more and more common that the loss of bond defaults not only damage the investors,It is also easy for enterprises to face the problem of financing difficulties.This paper takes this kind of companies,namely the deposit-loan company,as the main research object,selects Yongmei Group,which has this phenomenon and has a high credit rating before the occurrence of bond default,as the case company,analyzes the health status of its financial indicators,and explores the possibility of its financial risk.The paper studies the causes of the double high deposit and loan,and puts forward some suggestions on risk prevention.In this paper,Yongmei Group is selected as the case company of this study.First of all,by comparing the financial data of Yongmei Group from 2016 to 2020,the financial indicators such as profitability,operating capacity,debt paying capacity and development capacity are analyzed to analyze the reasons for the double high deposits and loans of Yongmei Group and the reasons for the bond default.The main reasons for the phenomenon of high deposit and loan are low capital management ability and low debt management level.The purpose of issuing new bonds is to repay loans.The resulting financial costs erode profits and fall into a vicious circle of new loans and old loans.Then the entropy method and correlation analysis are used to determine the weight of the evaluation index,and the specific score of the evaluation index is calculated by the efficiency coefficient method,and then the financial risk evaluation results of Yongmei Group are comprehensively analyzed.The most direct economic consequence of the double high deposit and loan is the decline of group profitability and refinancing difficulties.Based on the reasons and economic consequences of the phenomenon of high deposits and high loans in Yongmei Group,put forward the relevant risks prevention suggestions in a targeted manner.