Study On The Development And Risk Of Chinese High-yield Bonds

High-yield bond (HYB), also known as junk bonds, the lower-rated below BBB (Standard&Poor’s rating, Moody’s rating lower than Baa level) higher bond rate of return than government bonds and highly rated bonds issued. The period is generally5-10years. In China, the current is generally defined as a rating below AA-grade bond for high-yield debt.high-yield and other rating bonds biggest difference is the higher default risk, higher risk premium. China’s bond market development is not balanced, HYB play its function indispensable Securities carrier is also important species to promote the marketization of interest rates in China, therefore, high-yield bonds in China development and its risk, whether to the regulators, policy makers, investors have greater practical significance.Firstly, an overview of the development of China’s high-yield bonds and high yield bonds have potential advantages in the development of our country were reviewed. Chapter Ⅲ of this paper, high-yield bonds in a mature capital market development of overview, the main development of the U.S Chapter IV on the risk of high yield bonds and its influencing factors and metrics.The fifth chapter is an empirical study, After part of this chapter is mainly related to credit risk analysis. In this chapter we have chosen the T-bond futures as a hedging instrument. Chapter VI is a summary of part of the first summary of the conclusions in the paper analyzes the role and significance of the high-yield bonds,and make some relevant recommendations.