The Corporate Bond Default Risk Measuring And Bonds Investing Picking Study: Based On The Industries Points

The scale of China’s corporate bonds is increasing rapidly in recentyears. Although up to now, there is still no corporate bond default case fromChinese corporates, but the potential default risks are gradually drawingmore and more attention from the market. By studying the corporate defaulthistory of United States, the overproducing and too much tax burdenbecome the significant features of the default corporates, especially in thebad economic business cycle.Sorting different industries while considering the default history ofUnited States, this paper builds quantitative models to measure the defaultrisks for different industries. Standing on the point of industry-chain, itanalyzes the results of the models and figures out the difference between thetheoretical explanations and the practical situations. Accounting for bothrisks and returns, it provides a positive solution for investors to make theright decision to choose what kind of corporate bonds to invest. It alsodemonstrates some related study topics based on the study of the corporatedefault rate, reminding the investors to pay attention to the co-relationshipbetween the potential risks and the different financial innovations.