The Analysis Of High-yield Bond Market Development In Our Country

The high-yield bonds also known as junk bonds,from the perspective of international,high-yield bonds are refer to the level of credit ratings below investment grade bonds,that is to say below BBB or Baa.It compared to the higher bond credit rating,there is a greater credit risk,but high risk with highly yield,it has a high rating that highly rated bonds could not get.In developed internationally market.The high-yield bond widely applied in medium small-size enterprises and leveraged buyouts.Due to the nature of high-yield bonds not only have the features of the bond,but also can get the high-yield which like the stock.So establishing the high-yield bond market could promote the development of the bond market,on the one hand,it could meet the demand of enterprise financing,on the other hand could also provide investors with diversified financial investment tool.From the perspective of our country,the high-yield bond market is a challenging issue for us market which not yet mature.For a long time,the high-yield bond market development lags behind in China and could not play a proper role.Under the concept that indirect financing is complementary and dominance direct financing,China should vigorously develop direct financing tool.Especially medium small-size enterprises financing demand is raising,the development of high-yield bonds becoming more prominent.In addition,With China's macroeconomic development,China's economy is in a L-forms and at the bottom that GDP growth is from fast growth into rapid growth and excess capacity.In this period,most domestic enterprises need to transition,especially in the case of national policy reform of the supply side,the transition will become the backbone of enterprises.During the transition period,under the development of foreign economic,there will be a wave of mergers and acquisitions boom that high-yield bond market at the same time also can use its financing characteristics,promote merger events.From the theoretical perspective,high-yield bonds cannot development in our country and never really to real financial market.So no matter from the reality demand,and the theory of practice,the establishment of the high-yield bond market is necessary.This paper make comparative between the Chinese and foreign high-yield bonds in the two aspects of market maker system and credit risk management system,which think it can solve problems about our high-yield market such as unreasonable rating,concentrate period,industry distribution and lack liquidity.Firstly,describe the present situation of domestic and foreign high yield bond market,because of which does not exist the pure high-yield market in China,so analogy of high-yield bonds and combining the reality of our country,defining he Chinese type high-yield bond,than according the concept to screen Chinese bond market.Secondly,this paper argues that the main problem of the current situation of high-yield bonds is that Chinese high-yield bond market system is not perfect.By comparing the similarity-es and differences in Chinese and foreign high-yield bond market maker and credit ri sk control rence of foreign high-yield bonds early manifestation of the development to the present,analysis the lack of motivation for the establishment of high-yield bond market in Chinese high-yield bond market in the market maker and the credit risk man agement.Finally,through the comparative analysis,put forward some suggestions on China's high-yield bond market maker,credit rating and investor protection system.