Research On The Influencing Factors Of Issurance Credit Spreads Of Medium-term Notes

Medium-term notes refer to debt financing instruments that are issued by companies with legal personality in the inter-bank bond market according to plan and promise to repay debts and principals within a certain period of time.Medium-term notes usually have a term of between 1 and 10 years and can effectively meet the corporate financing needs.Credit spreads is an important indicator for measuring the risks and returns of medium-term notes.Studying the factors that influence the spread of mid-term notes on issuing credit spreads can provide a reference for investors and issuers of medium-term notes in the context of the breakage of rigid payment of credit bonds.Based on the credit spread decomposition theory,this paper studies the influencing factors of non-financial and financial aspects of the credit spreads of mid-term notes issuance.In the non-financial aspect,macro factors,corporate factors,structural factors,and other factors were selected as research variables.Based on the information asymmetry theory,liquidity preference theory,and the seesaw theory,the non-financial factors affected the conduction path of the issuance of credit spreads and passed preliminary Statistical data verification,and then select a total of 4880 medium-term notes issued from January 1,2011 to December 31,2017 as a sample for regression analysis,and innovatively add the number of default events and special clauses in the medium-term notes market to the model study..In terms of finance,the company's profitability,debt repayment ability,operational ability,and growth ability were selected as research variables.Based on the information asymmetry theory,the transmission path of financial factors affecting the issuance of credit spreads was analyzed,and then 12 principal components analysis methods were selected.Four main components were extracted from the financial indicators.Finally,a linear regression model was used to study the influence of the principal component on the credit spreads of mid-term notes issuance.The study concluded that non-financial factors,the macroeconomic factors of economic prosperity index,CSI 500 index,medium and long-term loan interest rate and the interest rate spread of medium-term notes is positively correlated,and M2 consumer spending index is positively correlated with the interest spread of medium-term notes issuance Among corporate factors,the credit spreads of medium-term notes issued by state-owned non-cyclical industrial enterprises relative to non-state-owned cyclical industry enterprises are lower;the bond issue scale and debt credit rating in structural factors are negatively correlated with the spreads of medium-term notes issuance credit The number of market default events among other factors is positively related to the interest spreads on medium-term notes issuance.In terms of financial factors,the company's solvency and growth ability are negatively correlated with the credit spreads of medium-term notes,and profitability and operating capacity are positively related to the spreads of medium-term notes issuance credit.The issuance period and turnover rate have no significant effect on the spread of medium-term notes credits.