Bond Insurance In The Application Of Corporate Bonds In China

Bond market is the objective needs to improve the investment and financing system. Bond market financing of the social level, financial transparency and the relative stability of income is difficult to replace with the other investment and financing system. With China's rapid economic development, increasing level of local government finance. Bond insurance system as a safeguard investor interest in bonds, units of the bond issue bonds increase trust and the protection of a system arrangement and operation, has been recognized more and more countries.This paper studied on the bond insurance, the system generated by the theoretical foundation and development of the phenomenon studied through the bond insurance system development in other countries on the status and success, on the prospect of China's bond insurance system carried out a feasibility analysis. The main contents are as follows:(1) Describes the bond insurance system produced in the United States and other national development. In 1971 the first U.S. Company to provide municipal bond insurance, since then municipal bond insurance system developed gradually. Bond insurance in 1998, reached its peak. The introduction of bond insurance municipal bond market has made great progress. And various government guarantees, bonds, the efficiency of the insurance will not have a negative incentive effects. The agency has to issue bonds to pay for insurance costs, and then the professional to analyze the bonds corresponds to the risk profile of the project. With bigger risk the credibility of the issuer to get the higher value-added premiums paid. The insurance companies will promptly proposed reorganization of the issuer on the way to reduce the risk of the risk.(2) Discussed the common bond insurance system theory. Municipal bonds and corporate bonds credit problem is the formation of the current issue of the bonds market constraints. Bond issuance process for return and risk characteristics, and thus asymmetric information theory, signal transmission theory and market segmentation theory formed the theoretical basis of bond insurance.(3)There is no uniform pattern to form a standard; various countries have different characteristics form the system. An increase of bond insurance credit rating bond issues, to effectively guarantee the stable development of the bond market, the regulation of the financial system and deepen the financial system played an important role in. On the U.S. financial credit crisis was discussed analysis of deep reflection of the bond insurance crisis caused by the reasons for financial regulation, market discipline mechanisms, and financial analysis of normal hazard is discussed.(4) Finally, the analysis of bond insurance system established in future. Ours bond market is seriously lagging behind the developed capital market. Municipal bond is an important part of the financial market. As China's market economy and the financial system, deepening of the reform is necessary to establish a market economic system in the bond insurance system on the improvement of China's financial regulatory system plays an important significance.