Corporate Bonds Default Risk Measurement Under The Rigid Payment Break

In the past three decades,China's corporate bond market has continued to develop,and its distribution scale and variety have become more and more diversified,becoming a vital part of the financial market.It has played an important role in China's economic transformation,development and coping with the international financial crisis.It also provides vitality for the development of the substantial economy.At the same time,as China enters the economic downturn,the risks the bond market faced are constantly emerging.The default of the “11 Super Day Debt” in 2014 marks the breaking of the myth of rigid payment in the Chinese bond market,and then the default happens constantly on the bond market.It has become a common phenomenon,and the negative impact of the government's rigid redemption has emerged.The intervention of goverment makes the market resources unable to be used efficiently.If the default is ignored,it will have a bad impact on the entire bond market.Based on the background,this paper analyzes the status of corporate bond default in China,finds the key reasons for the default of corporate bonds,and provides reference for investors and goverment.On the premise of finding and collating relevant literature,this paper begins research with the issued corporate bonds,and finds the main influencing factors that lead to corporate bond default through the ways of literature review and empirical research.Firstly,it discusses the related concepts of corporate bonds and rigid redemption,and sorts out related domestic and foreign achievements.Then it analyzes the reasons of rigid redemption,the status of default in corporate bond market and the main influencing factors.We select the financial indicators and non-financial indicators of the bond issuers,use principal component analysis and logistic regression model to conduct empirical research,the result shows that the company's profitability,solvency and operational capabilities,as well as the company's external environmental factors have an important impact on corporate bond default risk.Finally,this paper puts forward some suggestions for dealing with the default risk of the corporate bond market.It mainly includes establishing a reasonable operating mechanism improving the database of the bond market,promoting the development of credit rating agencies,continuously optimizing the structure of the company and strengthening the awareness of investors.All these measures have very important reference value for promoting the perfection and maturity of the corporate bond market.