Analysis On Default Of Private Enterprise Bonds

Under a series of policies to guard against systemic risks,the financing environment of the real economy has become increasingly tense.In recent years,bond defaults have accelerated,and the proportion of defaults by private enterprises has increased significantly.At present,the bond market has become the second largest bond market in the world after the United States.By the end of May 2019,more than 300 bonds had defaulted in the domestic bond market,of which more than 60% were defaulted by private enterprises.There are many factors behind the frequent defaults of private enterprise bonds,such as the national de-leverage policy,the irrational debt structure of enterprises,the blind expansion of investment and so on.How to transform the investment business of commercial banks and how to realize the transformation from non-standard financing to standardized financing after the new capital management regulations come into being deserve our deep consideration.At the same time,the real situation of private enterprises' default constantly appears in the bond market,and how to select high-quality private enterprises as the breakthrough of business development.Always in doubt.By collecting a large number of literature,drawing on the past scholars' research experience on bond default,and combining with the overall default situation of the bond market at present,the background of bond default of Xinguang Holding Group Co.,Ltd.,the introduction of economic cycle and regulatory policies,the problems of the company's own operation,the changes of financial data and the company's pair of bond defaults are discussed in this paper.Investment and financing management and other issues are studied and analyzed.Finally,through the analysis of bond default,this paper puts forward relevant research and practical suggestions.Bond default is closely related to the overall situation of macroeconomic policy.The number of default bonds increased significantly in 2018,which was affected by the downturn of the economy.At the same time,the Sino-US trade war also had a greater impact on some domestic industries.Under the disadvantageous situation of internal and external troubles,it is particularly important to analyze and screen customers.To formulate a set of effective access standards will greatly reduce business risks.At the same time,it will be able to have a deeper insight into the changes of customers' operation,financial and credit status,and truly identify potential risk points of customers.