Research On The Reasons For Default Of Bohai Leasing Bonds And Risk Prevention

With the increasing demand of enterprises for funds,bond financing has become one of the financing methods of most companies,which has promoted the rapid development of China’s bond market.However,at present,the risk of bond default still exists in a large range in China,and bond default has gradually become a normalization,which has a negative impact on the healthy and orderly development of China’s capital market.In recent years,leasing companies have accounted for nearly 6% of the newly added bond default entities.Bohai Leasing,which ranks high in the leasing industry,also experienced bond defaults.This article takes the Bohai Leasing Bond Default Event as the research object,analyzes the reasons for bond default from the changes in profitability and other indicators,and proposes corresponding measures to prevent bond default risk.At the same time,it can provide certain reference significance for other enterprises.Based on risk management theory,capital structure theory and financial distress theory,this paper adopts the literature reading method,event study method and comparative analysis method to comprehensively analyze the impact of bond default events on the case companies and the causes of bond default,and then puts forward prevention strategies for bond default.Firstly,by reviewing domestic and foreign literature related to the causes of bond defaults and the prevention of bond default risks,the concepts of bond default and debt default risks are defined,and theories such as risk management theory,capital structure theory,and financial distress are selected to lay a theoretical foundation for the subsequent analysis;Secondly,introduce the situation of Bohai Leasing Company,and introduce the existing bonds and default bonds of the enterprise when issuing bonds;From the perspective of the impact of bond defaults on the case company and changes in financial indicators,combined with financial data from companies in the same industry,this study analyzes the reasons for the decline in debt repayment ability and bond defaults,such as declining profitability.Finally,risk prevention measures are proposed to address the reasons for bond defaults,in order for enterprises to better prevent default risks.Through research,the following conclusions have been drawn: Firstly,the default of Bohai Leasing bonds has had a negative impact on the company.After the bond default,the credit rating of Bohai Leasing entities was downgraded,the company’s stock price continued to decline in the short term,and the company’s main business income decreased year-on-year,resulting in a downward trend in the company’s profitability,operational ability,and development ability in the short term;Secondly,the reasons for the default of Bohai Leasing Bonds include changes in the macroeconomic situation,external reasons for fierce competition among the same industry,as well as internal reasons such as weakened profitability,investment not achieving expected results,unreasonable debt structure,and a lack of risk management ability;Thirdly,using the KMV risk warning model in advance can effectively predict bond default risk.Improving profitability,handling the relationship between operation and development,and optimizing financing structure can help prevent bond default risk.