Study On The Influence Of Local Government Implicit Guarantee On Credit Spread Of Urban Investment Bond

City investment bond is a kind of financing tool with Chinese characteristics,which came into being under China's financial system and laws and regulations.However,with the development of China's bond market and the improvement of the development system,risks of local government debt have been accumulating,and the central government has begun to ask local governments to gradually remove the implicit guarantee of city investment bonds.It is of great significance for investors and local governments to explore how the implicit guarantee affects the credit spread of urban investment bonds and how the implicit guarantee affects the credit spread of urban investment bonds.This paper first summarizes the background and development process of the development of urban investment bonds in China.Secondly,the existing research results on urban investment bonds are sorted out,and the influence mechanism of implicit guarantee on the credit spread of urban investment bonds is sorted out.On the basis of previous researches,this paper enriches the types of research objects,which can better reflect the real situation in China's urban investment bond market.This paper takes urban investment bonds issued from 2009 to 2019 as the research object,and studies the impact of local governments' financial resources and administrative grades on urban investment bonds,the response of third-party rating agencies to explicit guarantee of local governments,and the impact of "document no.43" on implicit guarantee.The results show that: first,there is no significant effect on the credit spread of urban investment bonds whether there is guarantee or not,while the financial resources and administrative level of local governments have a significant effect on the credit spread of urban investment bonds.The stronger the financial resources of local governments are,the higher the administrative level is,and the lower the credit spread is.Second,although the presence of guarantee throw debt credit spreads have no significant effect on the city,but the dominance of local government guarantee significantly improved the city debt debt rating,this may be due to "issuer pays" mode in our country,rating agencies and the issuer conspired to improve the city for debt debtrating,however,this does not really reflect the bond credit risk rating.Third,document 43 effectively reduces the implicit guarantee of local governments.In order to further alleviate the negative impact of implicit guarantee,this paper proposes the following Suggestions: for local governments,reduce the intervention in the issuance process of urban investment platform,and accelerate the progress of special debt management reform;For investors,they should pay attention to the operation level of the city investment platform itself.For the rating agencies,to play their professional,real bond evaluation.