Research On The Causes Of Bond Default And Risk Management Of Taihe Group

The first bond default event occurred in my country in 2014.Since then,the number and amount of bond defaults have continued to rise.In 2021,a total of 140 bond defaults will occur,with a default scale of 146.497 billion yuan.In recent years,the number of corporate bond defaults has been increasing,covering a wider and wider range,and defaults have become normalized,which makes us have to think about the reasons for this phenomenon and how to manage bond default risks while developing.This paper selects the representative listed real estate company Tahoe Group as the research object.On the one hand,this company is the first real estate company in China to rank among the top 50 defaulting real estate companies.The number of defaults and the amount of defaults are quite large.The default housing company with the largest asset scale has raised concerns about the credit risk of the real estate industry;on the other hand,the company has adhered to a diversified layout and a strategic positioning of high-end housing,and the external environment is facing the impact of national tightening policies and the new crown epidemic.The operation and development of He Group is facing huge challenges,and the company’s debt risk has attracted much attention.The research on the cause of the company’s bond default and risk management has certain practical value.This paper first expounds the basic concept and theoretical basis of bond default by sorting out and summarizing relevant domestic and foreign literature,and then introduces Tahoe Group and its bond default situation,including the company’s equity structure,operating conditions,development strategy,default process and bond rating.Changes and other circumstances,and then consider the reasons for Tahoe Group’s bond default from the perspective of external factors and internal factors.Through exploration,it is found that the company is affected by external factors such as macroeconomics,national policies and industry development,and ultimately due to the decisive influence of internal factors such as the company’s aggressive strategy,poor management,and deteriorating operating conditions,resulting in a break in cash flow and failure to repay the due bonds.A material breach occurs.After analyzing the causes of bond default,this paper puts forward some suggestions for bond default risk management from the perspective of listed company Tahoe Group from three aspects:pre-prevention,in-process control and post-event countermeasures.In addition,this paper specially selects the revised KMV model suitable for real estate companies to measure the credit risk of Tahoe Group’s bonds,and calculates the default distance of Tahoe Group through the model.It is found that the revised KMV model can effectively warn the credit risk,and companies can The default distance calculated by the model makes appropriate response measures in different credit risk periods.Finally,according to the case,some suggestions are put forward to regulators,credit rating agencies and investors,hoping to jointly promote the healthy development of the bond market.