Basis on PMI of Corporate Bond Spreads Research

This chapter analyzes the theoretical basis of the relevant papers.First, the meaning and connotation of corporate bond yield spreads to define the difference between corporate bonds and corporate bonds; secondly, analyzes the determinants of corporate bond yield spreads. Chinese corporate bonds and the existence of two kinds of corporate bonds credit bonds.About China's bond market, corporate bonds and corporate bonds, there are three different views, some people think corporate bonds and US municipal bonds is similar to the same corporate bonds with Europe and the United States corporate bonds; some people think that corporate bonds include corporate bonds and state-owned enterprises issue project bonds; Some people believe that they are different, but also corporate bonds included in corporate bonds, which is relativistic thinking.Corporate Bond Yield Spreads Connotation of Corporate Bonds.In fact, they are different in the following aspects, one, many corporate bonds guaranteed bonds issued by local governments, such as the city to vote bonds and the like.Second, corporate bonds to raise funds according to project needs, different European and American corporate bonds.Third, from a regulatory point of view and bonds, corporate bonds and project construction is closely related to corporate bonds issued by the Development and Reform Commission for review.And by the SFC approved the issuance of corporate bonds, exchange-market transactions.Corporate bond research object for the Shanghai Stock Exchange and Shenzhen stock exchanges, via the Commission approved the issuance of these bonds, issuers of listed companies.The bonds are mostly short and medium term.Bond credit rating is relatively high.Issuers widely distributed range of industries, covering almost all sectors, with a certain representation. Connotation of Yield Spreads.Corporate bond yields and spreads early by many scholars as credit spreads, it is assumed that risk-free government bonds and corporate bonds yield to maturity higher than the same period some of the risk-free government bonds yield to maturity.Investors face is mainly credit risk, corporate bond yield spread to some extent reflects the size of the company's credit risk profile.Early scholars mining corporate bond yield spreads measure the size of the company's credit risk, while investors expected loss is the main measure of credit risk.Therefore, in this assumption, the expected loss should be equal in value to corporate bond yield spreads.But recently, some scholars empirical analysis found that the expected loss than the corporate bond yield spread is much smaller.The shorter the term of the bond, the higher the credit rating, expected loss accounts for corporate bond yield spreads smaller proportion.This article will be expected inflation, exchange rates, the broad money supply, GDP growth rate, idiosyncratic volatility, liquidity risk, tax, risk and other risks caused by the system, the same release period, the same expiration date of the company's stocks and bond yields It is defined as the spread between corporate bond yield spreads (corporate bond spread).It is the object of study, hereinafter referred to as the yield spread, or spread or risk premium. Corporate bond spreads Determinants Macroeconomic Factors.