| Since the resumption of bond issuance in 1981,China's bond market has been developing rapidly,and there has been a qualitative leap in the number and amount of bonds issued.More and more participants are widely active in the bond market of our country,at the same time,they have greatly enhanced the financing ability of our enterprises.However,with the gradual development and maturity of China's bond market,the risk of bond default is also increasing.Therefore,in this development situation,market participants need to strive to improve the ability to identify and deal with bond default risk.At present,the bond market of our country is still in the stage of mature development,and the degree of bond market operation is insufficient.In the development of mature bond market,bond default is inevitable.However,due to the potential rule of "rigid payment",there has been no substantial bond default event in China's bond market since its issuance for more than 30 years.The government will step in to support the bonds that may default,which seriously hinders the bond market operation.However,in the past five years,bond default has developed from nothing,from occasional to frequent events.The myth of "rigid payment" has been broken,and bond market has entered the stage of normalization of default.On July 5,2018,the Shanghai Clearing House announced that it had not received the principal and interest of "17 Yongtai cp004" bonds from Wintime Energy within the specified period,and the company's bonds officially declared a default.When the bond was issued,the rating results of the main body of the company were rated AA + high by united credit,and the rating outlook was stable.However,due to the macroeconomic downturn,the industry environment deterioration and other reasons,the company's radical investment diversification strategy had problems,the profit showed a significant downward trend,and the financial situation was worrying.Due to the large number of corporate bonds issued and the cross default clauses attached,the default accelerated the maturity of 13 bonds,such as "18 Yongtai Energy ppn001",becoming the company with the largest number of bond defaults,which caused great repercussions in the bond market.In this paper,case study,event study and financial analysis will be used to analyze the causes and consequences of Wintime Energy's series of bond default events.From the four different perspectives of macro environment,industry development,company level and credit rating,a systematic analysis will be carried out to analyze the causes and causes of bond default In order to get the relevant conclusions,and then put forward suggestions for private enterprises to prevent bond default.Through the case study of Wintime Energy bond default,we can get the following conclusions:(1)the main reason of bond default is the radical expansion of corporate strategy.(2)The rating agencies did not play a warning role in the bond default.(3)Lack of investment risk awareness is not conducive to the long-term development of the bond market.In this paper,we also put forward the following suggestions to prevent bond default:(1)Improve the corporate governance ability to reduce the credit risk of the company.(2)Improve the rating system of credit institutions to guide the healthy development of bond market.(3)Strengthen the risk publicity of investment bonds to improve the risk awareness of investors. |
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