The Impact Of Industrial Capacity Utilization On The Credit Spreads Of Corporate Bonds In China

In this paper,the problem I study is weather our country's industry capacity utilization affect corporate bond credit spreads.In recent years,the credit rating of the bond market has been reduced,and the frequency of default events has increased significantly.The credit risk situation of the bond market has continued to deteriorate in 2011-2016.Therefore,the credit risk of bonds has aroused wide attention,and credit spreads are the key indicators to measure credit risk.Therefore,this paper focuses on the credit spread and its influencing factors in the field of corporate bonds.Moreover,in recent years,the credit spreads between industries have become more and more differentiated,and the industry with excess capacity has shown a trend of widening interest rate differentials.The capacity utilization ratio indicates that the industry is in a state of unbalanced structure,and the industry supply exceeds the demand of competition,the profit margin is reducing and the credit risk is increasing.So based on the argument above,I suppose that in recent years the different performance of credit spreads among industries may be due to different industry capacity utilization and industry capacity utilization will be a certain impact on corporate bond credit spreads.This paper introduces the index of industrial capacity utilization rate into the framework system of the bond credit spread of domestic companies,and uses a linear regression model based on the theoretical analysis to conduct an empirical study.This paper makes a regression analysis of corporate bonds in eight key industries issued between 2011 and 2016.The empirical results show that capacity utilization is one of the factors that influence the credit spread of corporate bonds.Therefore,this paper suggests that we should focus on the credit risk of corporate bonds in industries with excess capacity,and investors should demand higher returns on corporate bonds issued by companies with low capacity utilization to make up for the credit risk they may incur.In addition,the government and enterprises should attach importance to the problem of excess capacity and take measures to stimulate demand,reduce excess capacity and promote benign development of the company based on the problem of excess capacity exposed by capacity utilization measurement.