The Research Of Ivestment Risk Of Fixed-Income Securities In Commercial Banks

The commercial banks from establishing the present,risk management has been one of the problem ofthe management. The early commercial bank credit risk management and management tools are relativelysimple. Since the1970s, with the financial innovations continue to emerge, the business of commercialbanks gradually expand and then gradually relaxed financial regulation, the emerging wave of financialliberalization, commercial banks are facing an increasingly complex competitive environment, commercialbanks and the risk of the growing trend of diversification. All kinds of new risks are constantly emerging,which is the impact of a growing trend. From1991, Japan’s Fuji Bank in the stock trading loss of43billion,to Japan Dai-Ichi Kangyo Bank in December1991, a loss of3billion in foreign exchangetransactions; from the British Barings Bank in1995February with a loss of$1.3billion in stock indexfutures in September1995to Japan and Japan banks in the U.S. bond trading losses of$1.1billion; fromthe National Westminster soil Bank financial markets Group in March1997in options trading loss of￡140million to Australia in January2004, the bank lost$140million in options trading, banking investmentlosses are not infrequent.2008U.S. subprime mortgage crisis hit in the banking sector, leading to a bad debt ratio ofcommercial banks increased significantly, a great impact on the profitability and capital adequacy ratio ofcommercial banks. Provisions in the Basel II capital adequacy ratio of commercial banks to maintain morethan8%, of which core capital adequacy ratio above4%. All assets of China’s commercial banks, the loandoes not have the liquidity and risk, fixed income securities with greater mobility, higher security, betterreturns and tax benefits, has become second only to the second-largest asset of the loan.Commercial banks has its own particularity, management’s goal is to make the minimum risk tomaximize profits, but also to meet the safety, liquidity and profitability of the three unified. As theproportion of investment in fixed income securities assets of China’s commercial banks are increasing, theimportance of the position of the fixed-income securities to invest in the business of commercial bankingassets rising, it will become the assets of the business of commercial banks the most flexibility andinitiative a. Therefore, both very urgent to have practical significance of the research topic of fixed incomesecurities assets. In the securities investment management, risk management is most important. Contemporaryfinancial globalization, financial innovations are emerging and increasingly complex financial risks,risk management is good or bad a direct impact on the success or failure of investments insecurities. This article start with the definition of fixed-income securities, characteristics,classification, and fixed income securities market analysis start with the object of this paper to forma clear understanding of the practical significance of China’s financial markets. Then a briefoverview of the risk of investment in fixed income securities, as well as the current situation ofcommercial banks’ investments in fixed income securities, to clear fixed income securities assetsin the assets of commercial banks occupy an important position, and are becoming increasinglyimportant. Next, we analyzed the main methods of measuring risk, which leads to the VaR-theGARCH model. In this paper, we passed on the Government Bond Index were analyzed to arriveat the commercial banks there are certain risks in investment in fixed income securities. Finally, wepropose a strategy to guard against the risk of investments in securities...