Analysis Of Corporate Bond Credit Spread In China

The five-year corporate bonds issued by Company A in January 2012 had defaulted in January 2014.The purpose of this paper is the corporate bond spreads as the research object.Analyzing the causes affecting the A corporate bond spreads,and giving the solutions to help A company to avoid the bond default.Through understanding of the history of the company bond in the domestic and foreign,firstly taking 84 five year bonds as the research sample which were issued in China from 2010 to 2017,constructed mainly from three aspects of monetary policy,economic cycle and the company operating capacity and solvency as an influence factor model of company bond spreads,and did the domestic corporate bond panel data regression.Secondly,based on this model,making analysis A corporate bond default issue from that three aspects,and finding out problems;finally,Through the analysis of the cause of the problem,give out the corresponding solutions and countermeasures,and help A company to avoid similar bonds default issues.This paper defines the model variables from three dimensions,the monetary policy and the economic cycle,the company's operating capacity and the solvency,and the bond terms.The introduction of PMI,M2,bond issuance,bond maturities,asset liability ratio,accounts receivable turnover rate,quick ratio of A company as explanatory variables,bond spreads as explanatory variables,construct the model of factors influencing the spread,explaining the cause of default of corporate bonds by the factors of this model.The analysis results show that a negative correlation between the factor and bond spreads are CPI,PMI,M2,SHIBOR,the macroeconomic cycle is good and the loose monetary policy will lead to bond spreads narrowed;in addition,A company accounts receivable turnover have strong explanation for the bond spread,in fact,one of the main factors that leading A corporate bond defaults is accounts receivable recovery period is too long;finally,there was a positive correlation between the factor and bond spreads are bond price and the remaining days.Reference to the results to provide policy recommendations for giving help A company to avoid bond default recurrence.