Research On Credit Risk Management Of Corporate Bond Investment Of W Rural Commercial Bank

Corporate bond investment is an important channel for diversifying the sources of profits of banks,and also one of the independent financial innovation means of banks.In China’s bond market,commercial banks have always been one of the most important investors.In addition to the traditional credit business,the proportion of bond assets in its total assets has increased year by year.In recent years,under the background of national industry transformation,the economic growth rate in our country appears to slow down,which makes the commercial bank enterprise bond investment face new changes.In 2014,the first corporate bond defaulted in China’s bond market,and then the market default events increase year by year.It puts great pressure on the risk management of many corporate bond investors,including commercial banks.From the point of view of investment safety,it is very important for commercial banks and other investors whether they have strong ability of risk identification and evaluation.Compared with large financial institutions,rural commercial banks lag behind in credit risk identification and evaluation.Therefore,the establishment of feasible credit risk identification and evaluation system and the identification,evaluation and management of credit risk of enterprise bond investment can enhance the risk management ability of enterprise bond investment business of rural commercial banks and guide them to carry out enterprise bond investment business more scientifically and steadily.This paper studies the concepts and theories relating to corporate bonds and credit risk,and uses the methods of external environment analysis and internal assets analysis.The article identifies the potential credit risk of the corporate bond issuers held by W Rural Commercial Bank,and gives the corresponding early-warning levels through the analysis.In the risk assessment of corporate bond issuers,W Rural Commercial Bank has established the fixed template of the expert score card according to its own demand,and has carried on the credit score to the relevant issuing main body.As the evaluation result of the quantitative rating method is more scientific and accurate,this paper suggests that W Rural Commercial Bank adopt the quantitative grading method.After the study of Logistic regression model methodology,a long list of financial indicators,business indicators and qualitative indicators was established.In accordance with the list of indicators to collect relevant data of the market-wide bond issuing enterprises,and then we will use defaulted enterprises as bad samples,using statistical software for analysis and identification,to find out the indicators for the high recognition of bad samples.Finally,14 industry models were established according to the classification of industries.According to the quantitative rating model,we find that there are low-rated bonds,and the rating results are basically consistent with the warning results identified above.Based on the results of risk identification and assessment,combining with the model classification deficiencies found in the rating process,the lack of a professional team,etc.This paper finally puts forward relevant solutions and subsequent safeguard mechanism.Firstly,it is to set up a scientific standard for investment,bring up some lower-rated bonds,the second solution is a quantitative model for optimization of update,and the third solution is improve the ability to analyze negative public opinion information.Fourthly,to build an excellent quantitative team.The followup guarantee mechanism includes establishing the risk prevention and control mechanism,perfecting the system guarantee mechanism,formulating the talent training mechanism and innovating the practice test mechanism,aiming to improve the credit risk management ability of corporate bond investment in W Rural Commercial Bank to access to more credit risk filter profits.