Study On The Financing Of Corporate Bonds And The Development Of Capital Market

Enterprises finance through Corporate Bonds not only provides the financing way, butalso enhances its value. Corporate Bonds provide financial instruments for the capital marketand the foundation for the capital market property price. Corporate Bonds also provide areliable transaction method for the capital market to relief risks, give the tool for the financing,promote the capital market development greatly. As a result, enterprise's financing way hasrelation to the development of the enterprises,it also relates to the development of thefinancial market, especial the capital market.I will analysis the financing of corporate bonds and the development of capital marketfrom two angles in this article. There are corporate financing and corporate bonds' function tothe capital market.Firstly, I will give the concept of corporate bonds, its difference from the enterprisebonds, its origin and development. Secondly, I will carry on the summary in this foundationfrom related domestic and foreign theory about corporate bonds and the development ofcapital market. Thirdly, I will analyses the enterprise bonds' status and function in capitalmarket. The enterprise bond and the national debt, the stock constitutes the capital marketmain finance tool together. They compose the different risk rank the investment tool. In themature capital market, the enterprise bond market is the most important constituent.In the developed countries, the enterprise bonds are not only financing method, it alsothe innovation vigor the financial tool. The development of enterprise bonds is benefit to thedisperser of capital market non-system risk, provides the foundation product for the financialinnovation, enhance the capital market's efficiency. It also provides capital funds and canpromote the capital market development effectively.Looking at the developed countries, we can see that no matter in the "market directed"countries or the "banking guidance" countries, corporate bonds make important roles in thedevelopment of capital market. Us, its capital market is the most developed market in theworld, has a very strong corporate bonds market.Japan is the "bank guidance" country. While finished the interest rate's marketability, itscorporate bonds also developed.Finally, I will analyze the financing of corporate bonds and the capital market, point outthe importance of corporate bonds to the development of the capital market.