Research On The Impact Of Unexpected Publicevents On Corporate Bond Defaults

In 2020,among the industries indirectly affected by the new crown epidemic,the real estate industry will bear the brunt because of its large overall scale,high single value,and close relationship with people’s quality of life.In 2020,the scale of defaults in China’s bond market reached a new high.It is worth exploring the path,effect and reasons of the impact of the epidemic on defaults.In 2020,Tahoe Group,the oncebillion-dollar real estate leader,experienced continuous bond defaults.The epidemic is a public emergency.In this bond default,the impact on Tahoe Group’s bond default risk is worth exploring and thinking.Based on the above background,this paper takes Tahoe Group’s continuous bond default as the research object.First of all,after reviewing the literature,it is found that the research on the impact of macro factors on bond default is relatively weak.The company did not give full play to the priority financing theory during financing,resulting in an unreasonable equity and debt structure of the company;failure to implement the credit risk management theory after financing resulted in the company’s accounts receivable being unable to be recovered in time and the company’s debt scale being too large;credit rating after default The downgrade of other relevant institutions is in consideration of credit risk management,which makes the company difficult in the financing market.At the same time,after sorting out the impact mechanism of sudden public events on bond default,it is concluded that sudden public events will increase the default probability of corporate bonds by affecting the liquidity of enterprises.Secondly,it introduces the company’s main business and equity structure,sorts out the company’s bond issuance on the way to development,and reviews the default status of corporate bonds.Thirdly,according to the impact mechanism,we analyze the impact path,impact path test and reasons of Tahoe Group’s liquidity on bond default under the background of the epidemic,and liquidity is divided into internal liquidity and external liquidity.The company’s internal liquidity is affected by the combination of shrinking sales volume,restricted operations,declining revenue,and poor payment collection,resulting in a sharp drop in operating cash flow;while external liquidity is affected by the low risk appetite in the capital market,the continuous reduction of shareholders’ equity,the decline in credit rating,Influenced by the low willingness of investors to invest,the cash flow for financing has plummeted.While the company’s endogenous liquidity is seriously threatened,external financing channels are also restricted,which has caused a double decline in operating cash flow and financing cash flow,resulting in the company’s inability to pay bonds and eventually bond default.Then analyze the impact of the epidemic on Tahoe Group’s bond default reason for the impact.Finally,according to the reasons analyzed above,opinions are put forward from two aspects: one is to revitalize the endogenous funds by means of orderly and diversified expansion,strengthening of collection management,actively catering to the market and timely disposal of non-performing assets;the other is to introduce strategic investors,Introduce foreign financing funds by optimizing the debt structure,adding governance departments,and changing the strategic positioning of enterprises to keep up with policy changes.The contribution of this paper is to study the impact of sudden public events on bond defaults,enrich the research on the impact mechanism of bond defaults at the macro level,and propose that Tahoe Group establish a risk response mechanism for bond defaults in light of the actual situation,which has certain reference significance for other similar corporate default bonds,and can provide reference for how companies respond to bond defaults when other sudden public events occur.