Research On The Influencing Factors Of Credit Spread Of Corporate Bonds In China

In the past decade,corporate bond products have played an indelible role in stimulating the real economy of our country from the beginning to the vigorous development in the capital market of our country.Since the 21st century,the issuance scale of corporate bonds has been expanding throughout the country.In 2015,CSRC issued the Regulations on the Issuance and Transaction of Corporate Bonds,which improved the ability of China's bond market to serve the real economy and strengthened the system criteria for issuing corporate bonds.From 2015 to 2016,China's corporate bond issuance market experienced "crazy" two years,the number and quota of issuance has been doubled by the rapid growth.While corporate bonds flourish and develop,there are risks concealing and breeding.With the arrival of a large number of "cashing tide" of corporate bonds,the central government deepens the reform of "deleveraging" in 2017.Under such background,bank funds are tightened.Many issuers of existing corporate bonds have cash flow problems,and can not issue new bonds to repay old ones.When it is difficult to pay,defaults occur frequently.As one of the types of bonds that frequently default,the credit spreads of corporate bonds have great reference value for judging the credit risk of bonds.Credit spreads of corporate bonds are used to compensate investors for subscribing to bonds issued by issuers of corporate bonds with certain risks.According to the scale of risks,investors will be compensated according to risks,that is,the difference between the issuing interest rate of corporate bonds and the risk-free interest rate.At present,the academic circles have not yet reached a conclusion on the factors affecting the credit spreads of corporate bonds and the degree of correlation.The research results of this paper are of great benefit to all parties involved in their interests,including issuers,investors and regulatory agencies of corporate bonds,as well as to the sound and rapid development of the corporate bond market.In the part of theoretical analysis,this paper firstly conducts in-depth theoretical research,reviews a lot of previous research results,combs and summarizes several factors that have an impact on the credit spreads,at the same time adds some elements from the personal perspective,and then integrates and summarizes 11 potential factors that can affect the credit spreads of corporate bonds from three different perspectives.The sub-elements are macro-environmental factors(deposit reserve ratio,risk-free rate of return,GDP,fixed assets investment),issuer's main factors(issuer's attributes,issuer's size,issuer's profitability level),individual bond factors(term,issuance scale,credit rating,credit enhancement).In the empirical analysis part,the factors summarized in the theoretical analysis part are taken as the variables of regression analysis.Taking all the general corporate bonds publicly issued in Shanghai and Shenzhen securities exchanges from 2007 to 2018 as samples,this paper constructs a linear regression model with 11 independent variables,and uses STATA software to analyze the data,and passes through it.The robustness test is carried out by removing the extreme data to analyze the extent of each factor affecting the credit spreads of corporate bonds in China.By using the linear regression method,this paper draws the following conclusions:the 11 sub-elements selected in the theoretical analysis can affect the credit spreads of corporate bonds in China.Among them,the risk-free rate of return,issuer attributes(whether state-owned)and debt rating have the greatest impact,and the negative effect of bond credit enhancement on the credit spreads of corporate bonds is also more significant.From the overall point of view,in the case of high risk-free return in the market,the credit spreads of bonds of high-rating companies with state-owned backgrounds are significantly lower,and the financing costs of the corresponding issuers are lower.