Study On The Secured Corporate Bonds Trustee

The company's development is inseparable from the financing. The bond issue is the main means of financing, but companies often require secured debt. In accordance with international practice, more bonds are issued by the company for the secured debt. If the vast amounts of corporate bonds respectively set the mortgage for the scattered secured creditors, the practice is not feasible. Anglo-American law established the trusteeship by the trust principle. In the trusteeship, the trustees are responsible for the secured right of creditors. This charming practice smoothes the difficulties above. The system started in the United Kingdom, and developed in the United States. US-made light of Japan, China's Taiwan and South Korea followed Japan, the companies established the secured trust system. Due to historical reasons , mainland China has not yet established the trust of the secured bonds system.In the issuance and debt management, both creditors and bond issuing companies cannot get a balanced point of mutually benefit so that both sides can not achieve maximum efficiency. As a benign system design , the secured debt trustee allows creditors and the strong companies achieving a balanced state on the whole. It not only protects the interests of creditors, but also maintains the convenience of the corporate financing and operating. Trust and investment institutions also take their advantages to develop the professional space, so as to achieve win-win situation. Because of the professionalism and higher credit, bonds issued by the trust agencies are more easily subscribed by investors, and the management costs and the negative impact are reduced. Corporate bonds in the trust business greatly expand the trust industry development space, meanwhile, it also actives financial markets and promotes social development and economic prosperity.In this paper, the first part generalizes the concepts , characteristics and historical evolution of the system .The second part focuses on the functions of the system in China, as well as the significance to introduce the secured corporate bonds trustee . The third part is an analysis on those legal issues in the operation of the secured corporate bonds trustee, especially the possible issues under different law systems. Based on the analysis, the paper tries to probe the solutions that suit for China.