Corporate Bond Credit Risk Analysis And Control

The corporate bond market has become an indispensable part of Chinese bond market since 2008. These years the domestic corporate bond market has developed rapidly. The market size has expanded dramatically, and new bond products have appeared. At the same time, the types of issuers and investors have become more diverse. Under the complicated circumstances, the credit risk will gradually be reflected by the volatilities of the market or the changes of the bonds issuers' business performance.The paper, which has been divided into four steps, briefly introduced the developing procedure of the china company bond. Based on those procedures, the paper clearly discusses and analyses the problem of the china company bonds market from the structure,the price,the credit level etc.The paper also introduces a brief idea that the credit risk of corporate bond should been evaluated from four aspects:financing risk, credit moderating risk, economy risk, the company management risk. In China,We thought that corporate bond yield spread was not s ignificant related to the i ssuers'finaneial conditions, that is to say the bond yield spread did not represent the credit risk of the bond; to some extent the credit rating of bond reflected the credit risk of the bonds, the higher ratings of the bond, the lower yield spread; PPI year-on-year growth rate, the M2 year-on-year growth rate and the stock market rate of return have very outstanding impacts on the credit spreads of corporate bonds. The higher the PPI, the higher the credit spreads of corporate bonds, and M2 year-on-year growth rate and the credit spreads have an inverse relation, while the stock market rate of return and the credit spreads are in direct proportion. In this paper, it also discusses the cred i t r i sk of "city investment and construction bond"Above all the discussion and analysis, this paper gives us the idea of founding a china corporate bond credit risk control and immune systems.