Research On Credit Risk Control Of Private Exchangeable Bonds

China's first private exchangeable bond was first issued successfully in 2013.Because of its few issuing conditions,low financing cost and decentralized risk,more and more enterprises choose to raise funds or reduce stocks at premium through this way.With the vigorous development of China's exchangeable bond market,the credit risk control and prevention of exchangeable bonds will be an important issue in the exchangeable bond market.However,due to the late start of the private exchangeable bond market,the imperfect policy system and the lack of historical credit rating data for issuers,the identification and control of the credit risk of private exchangeable bonds are still not perfect.The research object selected in this paper is the private equity exchangeable bond “16 Feitou 01” issued by Pegasus Investment on September 6,2016,with the shares of its controlling subsidiary Pegasus International as the target.This case is the first case of private equity exchangeable bond default in China's exchangeable bond market,which has received wide attention from all parties.Based on the combination of financial crisis theory and bond credit risk control theory,this paper discusses that high debt issuers may neglect their business risks and financial liquidity,which may eventually lead to financial crisis.By analyzing the economic consequences caused by the "16 Feitou 01" default event and the internal and external factors affecting the credit risk of private placement bonds,and measuring the credit risk of Pegasus investment through the Z-score discriminant model,according to the previous analysis results we can find that the specific problems existing in the credit risk management of private equity debts of Pegasus Investment,and provides risk control and prevention suggestions for the risk points of credit risk control of the issuer.Then,the paper puts forward corresponding suggestions for issuers,regulators and investors of exchangeable bonds,hoping that regulators can enhance the transparency of information and strengthen the supervision of the issuance of exchangeable bonds motivated by reduction,while bonds Both issuers and investors can form relevant cognitions,protect their own interests,and maintain the stable development of the exchangeable bond market.