| Bond is one of the important financing tools in the capital market,and also a common financing method for enterprises to raise external funds and achieve scale expansion.Based on this,China’s bond market has also achieved further development.However,with the increasing complexity of the bond market,credit risk has also begun to increase.Therefore,bond default events have also received widespread attention from the market.Especially since 2014,China’s economic model has changed greatly compared with the previous one,which has also affected the bond market to a certain extent.The first bond default event in China occurred on March 4,2014,that is,the default of "11 super day bonds".This event broke the previous situation of rigid cashing.Since then,a series of bond default events have occurred one after another,causing widespread concern among investors.As the pillar industry of the national economy,the real estate has an important impact on the economic market of China.During the period of leverage,the real estate foam is becoming more and more serious.In order to effectively prevent and control risks,the country has issued a number of leverage control policies for the real estate market.Therefore,in the context of de-leveraging policy,many real estate enterprises with poor liquidity and high debt ratio will face life and death.At the same time,after the rigid cashing is broken,the risk of bond default of real estate enterprises will gradually be exposed.In this context,it is of great significance to study the bond default of real estate enterprises.Based on the above background,this paper selects Sunshine City as the case study object to study its bond default events.First of all,this paper uses the literature research method to summarize the existing assumptions and views about bond default at home and abroad,and summarizes the capital structure theory,risk management theory and financial distress theory involved in this study.Secondly,through the case study method,the case of bond default in Sunshine City is discussed in depth,and the cause of its bond default is analyzed mainly from the external and internal aspects.KMV model is used to calculate the change trend of credit risk level in Sunshine City in recent years,and risk early warning analysis is carried out.At the same time,the model calculation results are compared with the rating results of third-party rating agencies.Finally,based on the analysis of the bond default of Sunshine City,the paper provides countermeasures and suggestions to prevent the default of real estate enterprises’ bonds,and summarizes the conclusions of the case analysis.Through the above research,it is found that the causes of the bond default of Sunshine City come from the outside and inside of the enterprise,and the internal problems of the enterprise are the main reasons for the bond default,which are mainly reflected in the decline of profitability,resulting in insufficient internal financing,narrow financing channels,aggravating the irrational degree of the capital structure.In addition,the enterprise treads on the "three red lines",resulting in limited financing,the cash flow outflow is far greater than the cash flow inflow,and the capital gap is large,Eventually,the capital chain is broken,the refinancing capacity is insufficient,the liquidity crisis is triggered,and the bond default occurs.Therefore,the following measures are put forward for the prevention of bond default in Sunshine City:Sunshine City should strengthen its attention to the macroeconomic environment and industrial policies,timely adjust its development strategy,control the expansion scale,reasonably allocate resources,improve the core competitiveness of products,and promote the innovation of financing mode,flexibly use equity financing and debt financing according to the actual development of enterprises,build a multi-term portfolio financing structure,and optimize the capital structure,Keep the cash flow of the enterprise at a relatively sufficient level,establish and improve the risk early warning system,and strengthen the risk prediction and prevention and control to realize the benign development of the enterprise. |
