The Impact of Credit Risk Mitigation on The Credit Spread of Private Enterprise Bond

• 1、Hunan University,College of Finance and Statistics,Changsha 410006

Abstract：This paper takes credit risk sustained-release certificate (CRMW) as an example to innovatively and quantitatively study the impact of credit risk sustained-release instrument on the credit spread of private enterprise bond issuance.First select additional slow-release certificate of corporation bond credit risk as the experimental group (117), and then by PSM method match and screened without additional credentials corporation bonds as the control group (252), as multiple linear regression the whole samples, the results show that the issue of credit risk slow-release tools significantly reduces the corporation bond credit spreads.According to the grouping regression of the subject\'s credit rating, it is found that the establishment tools of subjects of AAA and AA+ have significant effects, but the role of subjects of AA is not obvious.The restart of credit risk mitigation tools has effectively reduced the financing cost of private enterprises\' bonds, but the subjects of the underlying bonds are mostly highly rated private enterprises with low default risk, while the underlying bonds are mostly short-term bonds, which have limited effect on reducing the financing cost of the whole private enterprises\' bond market.Finally, based on the practice and research findings of credit risk mitigation tools, this paper puts forward policy Suggestions such as strengthening policy guidance and information disclosure, improving bond rating system and bond default market disposal mechanism, and gradually guiding the diversification of market participants.

Keywords： Finance CRM Private Enterprise Bond Credit Spread PSM