Influencing Factors Reasearch On The Couple Rate Of Private Exchangeable Bonds In China

With the rapid development of Exchangeable Bond(“EB”)in the last two years,relevant research on EB has gradually entered the field of scholars.At present,China's EB are mainly private bonds,and the transaction lacks a secondary market.Therefore,investors only obtain the coupon income from their holdings until maturity,or complete the conversion and obtain conversion earnings.At the same time,China's privately traded EB are issued at nominal value.The coupon rate is the basic unit of fund appreciation and is the result of the game between issuers,investors,and securities firms,which reflects the nominal income that investors hold when they hold bonds at the end of the period.At present,there is no scholars in China have conducted relevant research on the coupon rate of private EB.Therefore,this paper starts from the influencing factors of the coupon rate of private exchangeable exchange bonds,exploratively analyzes the influencing factors of the coupon rate of China's private EB,and provides suggestions for the coupon rate design of private EB and the successful issuance of private EB in the future.This paper uses factor analysis method and stepwise regression method to analyze the influencing factors of the coupon rate from the three aspects of the “debtness”,“stockability” and macroeconomic factors of the private EB.The results of the study find that the influence of the private EB' coupon rates is mainly its "share property".Efforts to convert shares,the size of exchange risks,the profitability of the underlying companies,and the value of investments have a major impact on the coupon rate of privately EB during the game between issuers and investors.The higher the conversion premium rate,the more difficult it is to convert shares.The higher the conversion risk factor,the greater the risk of conversion,the weaker the “equity” of bonds and the relatively higher coupon rate.The higher the investment value of the target company,the higher the exchange earnings may be,and the lower the coupon rate setting;the larger the bond size of the “debt” factor,the lower the coupon rate setting,and the combined effect of the special clauses is not significant.Finally,the higher the risk-free interest rate in the financial market,the higher the opportunity cost of investor funds and the higher coupon rate.Through this study,we have enriched the empirical research on private EB in the domestic academic community.This article analyzes in depth the factors affecting the coupon rate of private placement of EB,which is conducive to the issuer's reasonable interest rate range in the future under the premise of guaranteeing successful issuance in order to reach the goal of low financial cost financing and premium reduction;while private equity can be EB as a hybrid financing method in the financial market,and conducting in-depth research on it also helps financial markets.