Research On The Causes And Prevention Of Bond Default Of Real Estate Enterprises

As one of the main financing channels for enterprises,bonds have become increasingly mature since their development in the 1980 s,but at the same time,the phenomenon of bond defaults has also begun to unfold.2014 *ST Chaori fired the first shot of bond defaults,and in the following years,more and more enterprises have followed in the footsteps.2018 saw the first bond defaults of real estate enterprises,and some real estate companies are also facing the risk of bankruptcy.As a pillar industry of China’s national economy,such a phenomenon deserves attention and research.As a head real estate company,Taihe Group has characteristics common to most real estate companies,and the occurrence of its bond defaults is somewhat representative.Therefore,this paper selects Taihe Group as the research object,the purpose is to analyze the root causes of its bond defaults and put forward corresponding prevention suggestions to prevent similar bond defaults from occurring and provide certain references for other real estate enterprises similar to Taihe Group.In this way,new research contents are added from point to point to further expand the research ideas of preventing bond defaults and promote the sustainable and stable development of the real estate market.Based on financial distress theory,information asymmetry theory and debt deflation theory,this paper takes Taihe Group as the research object and summarizes the company subject,bond default process and default impact by using literature research method,case study method and combined qualitative and quantitative analysis method,and based on this,five major factors are extracted from many influencing factors by using factor analysis method,and root causes are conducted according to the five major factors.The research found that After the study,it is found that the root cause of Taihe Group’s bond default consists of three parts: firstly,due to the changes in the external environment which have a bad impact on its revenue and financing,making its sales revenue decline but facing huge financing costs;secondly,it adopts aggressive expansion means under high leverage,while the product turnover is slow,its own profitability declines and sales are poor;finally,the company’s debt maturity ratio is inappropriate,triggering debt Finally,the company’s debt maturity ratio is inappropriate,which leads to the concentration of debt repayment due.Meanwhile,this paper uses the F-score model to calculate the F-value of Taihe Group and compares it with the judgment results of intermediaries,and finds that there is a lag in the judgment of credit rating agencies and the rating results are inflated.Based on the above analysis,this paper puts forward suggestions for preventing bond defaults from three aspects: the company should improve its reaction ability in the face of unexpected events,and should always pay attention to the direction of policies,optimize the company’s capital management system and debt structure according to the changes in the market environment and its own operating conditions in the face of industry policy adjustments,and adjust its product strategy in a timely manner,in addition,try to transform the asset-light operation model to improve the overall safety of the company;Regulators and intermediaries continue to maintain independence and strengthen their functions to reduce information barriers,enhance timeliness,deliver effective information to investors,and guide the development of the bond market.