Analysis And Prevention Of Bond Default Risk

In recent years,the scale of China’s bond market has steadily expanded and the trading volume has flourished.However,while the bond market is developing rapidly,there are also some problems and risks.Because of the special situation of "rigid redemption" expectation in China’s bond market,the first substantial bond default occurred in 2014.Since then,the amount of bond defaults in China has increased year by year,and the financial risks in China’s bond market have also become increasingly apparent.In this context,it is increasingly important to study and analyze the causes of bond defaults and propose preventive measures.As an established state enterprise and a famous school enterprise,Founder Group is highly praised by both investors and credit rating agencies.The bond default event of Founder Group has a profound impact on the entire bond market,and it is of great significance to analyze and study the causes of its default.This article selects the "19 Founder SCP002" bond default of Peking University Founder Group as a research case,conducts research on the basic situation of the company’s default,identifies the causes of the default,and proposes preventive measures based on this,obtaining inspiration.This article first elaborates on the background and research significance of the topic,using a combination of comparative analysis,case analysis,and literature research methods.By analyzing and integrating domestic and foreign literature,introduce the concepts related to substantive defaults in the bond market.Afterwards,an in-depth analysis was conducted on the default cases of Founder bonds.Following the founder default event process and default progress,the public information was classified and organized.This article elaborates on the economic impact of the default of Founder bonds from three aspects: the same type of corporate bonds,creditor investors,and market environment;Afterwards,this article elaborates and analyzes the main reasons for bond defaults of Founder Group from the perspectives of macroeconomic,credit rating,and the company’s own environment.Afterwards,the article conducts research on risk prevention from both internal and external regulatory perspectives within the company.Through case analysis and research,it was found that companies should adjust their business strategies in a timely manner,control cash flow,and improve their decision-making ability to cope with risks.Regulatory authorities should improve their management system and strengthen the supervision of bond issuing companies and credit rating agencies.At the end of the article,the conclusion of the analysis of the default case of Founder bonds is summarized.Its bond default is not only influenced by the external market environment,but also has many problems in its own operation.In order to avoid the recurrence of such events,this article provides diverse suggestions from different perspectives.For bond issuing enterprises,they should focus on their main business and avoid blindly expanding businesses with weak correlation and high capital flow consumption.Meanwhile,they need to control their indebtedness and optimize their debt structure;For regulatory authorities,it is necessary to coordinate and improve the regulatory system among multiple departments;For credit rating agencies,it is necessary to continuously improve the timeliness of credit ratings to provide real-time feedback on risks,and objectively and timely adjust rating prospects;For the majority of investors,it is necessary to strengthen risk awareness,learn bond risk related theories,and also do a good job in follow-up management after investment.