The Research On Pricing Of Subordinated Debts For Commercial Banks

Commercial bank is the main and sub debt interest after the other inorder to solve the above but prior to the bonds of product benefits. Becausethe "adequacy" of commercial banks’ capital management announced, fourlines and some state-owned joint-stock commercial banks choose to issuesubordinated bonds to supplement the capital supplement to raise capitaladequacy rate, so its price has far-reaching significance.In this paper, the method of theoretical analysis, the theoretical basis ofsubordinated debt issued subordinated debt issued by commercial banks tothe specific procedures for issuing price to the study of commercial banks toissue subordinated debt collection process have a suspect, carries on theanalysis to these questions, providing solutions for their efforts. Chinese andforeign scholars on subordinated debt consolidation pricing theory, and theuse of option pricing model, the bank’s data applications which try toanalyze the issue of pricing of subordinated bonds. Model tries to give therules applicable to the general subordinated debt settlement pricing, analysis and case studies are given credit spreads. Commercial banks issuesubordinated debt pricing analysis showed that Chinese commercial banksissue subordinated debt prices generally there may be overestimated, thephenomenon of the low level of interest rates, holding each other on thesubordinated debt of financial institutions, commercial banks the mainreason for the low interest rate subordinated debt.The full text is organised as follows:(1) Commercial banks subprime related presentations(2) B-S model theory introduced(3) on the pricing of subprime BS model building and case studies(4) commercial bank subordinated reasons for the low pricing analysisand policy recommendationsAll conclusions are bellow：(1) There is a commercial bank subordinated debt underpricingphenomenon(2) The main reason is to hold each other subordinated debt ofcommercial banks and the implicit guarantee by the commercial banksshould accelerate market-oriented reforms...