Research On Credit Risk Management Of High Yield Bonds In China

High-yield bond, also known as junk bond, has been developed overseas for over 140 years. Through the study on credit risk management about high-yield bond, the formation of major investment on rate bond in China has been broken, which promotes the marketization of rate of interest in China, improves the mental maturity of investors, enriches the layers of China's bond market, and regulates the financing channels for middle and small-sized enterprises. Thus, the development of high-yield bond meets the needs of capital markets in China. However, the high-yield bond in China just started recently, we still face many issues. By studying and solving these issues, the product design of high-yield bond can be perfected and regulated, an appropriate external environment of developing high-yield bond can be provided, thus, the high-yield bond can function more in helping the middle and small-sized enterprises solve capital issues. In contrast, the high risk always comes along with the high profit, which, the study about the credit risk management of high-yield bond in China is of great theoretical and substantial importance. This essay is based on the development of both overseas and domestic high-yield bond, proposing the problems in the credit risk management on domestic high-yield bond, as well as the feasible strategies and proper solutions accordingly.