Case Analysis Of The Default Of Northeast Special Steel Bond

The bond market is an important part of China's financial market.After more than 30 years of development,the Chinese bond market has achieved a leap-forward development and has now become the third largest bond market in the world.Under the rapid development of the bond market,risks are also exposed during the development process.In March 2014,there was a substantial breach of contract on the "11Chaori bond".Since then,the Chinese bond market has just broken its myth,and subsequent violations have continued.On March 28,2016,the “Dongtegang CP001” bond defaulted and became the first public bond bond default,followed by a serial default of Dongbei Special Steel Group Bonds and eventually bankruptcy and reorganization.The normalization of bond defaults in the credit bond market exposes the release of bond market risks after the macroeconomic downturn,overcapacity in the industry,and corporate operations and other factors superimposed.This not only exposes the credit risk of Northeast Special Steel,but also exposes the current credit market in China.This paper analyzes the default cases of the bonds of Dongbei Special Steel Group and studies the process and causes of the default of the bonds in the credit bond market,and gives advice to participants in all levels of the credit bond market.Firstly,the article clarifies the background,purpose and significance of the study,the content of the study,and the methodology of the study.Secondly,it reviews the domestic and foreign documents of bond default,describes the regression model theory and KMV model used in this paper,and then publishes the credit bond market in China.Statistics of defaults were summarized,and the default characteristics of the credit bond market were summed up;then the basic data of Dongbei Special Steel Group and all the bonds issued by Dongbei Special Steel Group were collated and the issuance of the first default bond “15 Dongtegang CP001” was issued.Status,from the perspective of macroeconomics,industry factors,regional factors,and corporate finance,analyzes the causes of the default of “15 Dongtegang CP001” bond,and selects indicators to establish the regression model to test the significance of the influencing factors and obtain the impact “15 Dongtegang CP001” The main reasons for the CP001 bond default,the steel PMI index,the cumulative GDP growth in Liaoning,and the corporate asset-liability ratio have the greatest impact on the default of the “15 Dongtegang CP001” bond default.Finally,we come to the conclusions of this paper and suggestions for participants at all levels of the credit bond market.