Analysis Of The Causes And Economic Consequences Of Yongtai Energy Bond Default

Bond market is an important part of capital market and financial market,and also an important channel of external financing.Since its development,the bond market's function of supporting national construction and economic development has become increasingly apparent,and it has become the key construction object in the financial field.However,with the substantial expansion of the bond market,the overall risk of the market has gradually expanded.Since the "rigid payment" of bonds was broken,the growth rate of overlay GDP has declined and risk has accelerated.The scale of default reached its peak in 2018,involving 48 issuers,122 bonds and 112.316 billion yuan,an increase of 264% year-on-year.The phenomenon of debt market default has a greater impact on private enterprises,so that after default,the enterprise asset quality risk is high,refinancing difficulties,aggravated capital market risk and other economic consequences.Therefore,the study of the causes of private enterprise default and economic consequences of the business practice is also more and more important significance,to prevent the frequent violation of bond default is also a difficult problem to be solved at this stage.Based on the above research background,this paper selects Yongtai Energy Company as a typical case of large-scale private enterprises falling into default.Using the method of combining theoretical analysis and case analysis,we first comb through the default factors,default risk measurement and disposal mechanism on the basis of the existing literature,and then briefly analyze the development process of China's bonds and review the default process of the case company,and secondly,discuss and analyze the causes of default in the logical order.And use The Z-score model to verify the financial risk,and finally put forward the corresponding suggestions,in order to improve the financial planning of other private enterprises,to avoid financial difficulties to provide reference.This paper concludes the following conclusions: First,the cause of Yongtai energy bond default has internal and external causes,external causes include macro-environment,industry and regulatory factors,internal causes include financial situation,corporate strategy and internal control factors,of which internal causes lead to bond default.Second,the Z-score model can validate the risk of default on Yongtai Energy's bonds.In view of the above research conclusions,the following reasonable suggestions are put forward:(1)Issuers can prevent bond default from four aspects,such as establishing financial early warning system,standard management,changing management mode,and paying attention to industry risks.(2)Bond market regulators can improve the level of supervision from four aspects,such as enriching the variety of credit bonds,perfecting the default disposal mechanism,strengthening the disclosure of information and enhancing the credibility of the credit bond rating system.