The Risk Of Public Offering Bond Default And Its Riskmanagement

With China's macroeconomic gradually entering the new norm al,there has been a m ore prominent overcapacity problem s in the fi eld such as iron and steel,cem ent,photovoltaic.For the enterprises belonging to th e strong cycle industry and those sm all and medium-sized enterprises which are weak in anti risk ability,their operating pressure and refinancing pressures continue to increase,it has become a important way to issue bonds for the financing of enterprises.Faced with the complex external environment,the credit risk of China's bond market is constantly exposed,esp ecially after the issuance of bonds increased in 2009,there have been a num ber of debt defa ult and other credit risk events.Credit debt default extends from private debt to public in terest bonds involving mo re public interests,and the subject of breach extends from less powerful civil enterprises to rich s tate-owned enterprises and even central enterprises.Since the 2014 public of fering of "11 super day debt" credit risk default and lead to a bond default,and by the end of Decem ber 31,2016,there were 38 major credit risk events in China's public debt marketAs a state-owned enterprise,T ianwei bond defa ult is the first central enterprise and inter-bank market public bond default event occurred in the Chinese bond market,and it has certain representativeness,particularity and typicality.In this paper,the public of fering of bonds 11 Print-Rite MTN2 " was selected as th e research object,and the whole story of the bond default was com bed out,according to the analysis carried out by the bond credit risk analysis framework,the causes of bond defa ult mainly including the depression of investment in new ener gy and the declines of enterprise perform s,the poor benefits and nonstandard investment in new energy,the continues decrease of bank credit lines and the difficulties of external financing,the deteriorate of the bond credit rating,the losing support of the large shareholder and the lack of management of the creditors of the company,and all these issues lead to the bond default eventually.This paper begins with the Pr int-Rite bond default event,from the investor's point of view towards the bond default risk,som e advice is put forward such as enacting protective classe in purchasing bonds,taking full advantage of th e guarantee mechanism,perfecting the third party credit rating,publishing information clearly,establishing perfect risk sharing insurance market and completing the legal system of supervision.With these efforts,it is belied that the default risk will be controlled in a reasonable range.