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The successful practice of the "bond bank"

Author: WeiZhi From: www.yourpaper.net Posted: 2009-03-29 21:39:11 Read:
Summary As of the end of November 2006, the national development bank financial bond issuance exceeded 3 trillion yuan. To write papers article reviews the successful practice of the Development Bank; pointed out that under the correct guidance of the development of financial concepts, development banks to raise huge sums of money to support the state's key construction still government-led, together with the government to assume the system construction the obligation to explore solutions to the "two basic a" field of long-term financing of the plight of the active construction market. Market-oriented measures and first-class operating results and always strive to achieve the goal of a national credit securities.

Keywords: Bond Bank; the developmental finance; national credit securitization

As of the end of November 2006. The national development bank financial bond issuance exceeded 3 trillion yuan. To write Thesis Development Bank eight years sudden financial debt broken vouchers issued a row one trillion yuan, board 2 trillion yuan level in three years, and 2 years, exceeded 3 trillion yuan, successful practice in the field of financing proves once again that the "bond banks have to play to guide social capital, the support of key national construction days thick edge.
A "bond bank" Get Prime
March 1994, the National Development Bank, as double product investment and financing system and the financial system was born. National Development Bank is designed to "bond bank" model, reflecting the country has experienced since the founding of the field of investment and financing from the financial allocation to Bo Gaidai History in trying a new more efficient resource configuration more reasonable financing model
By the time constraints of the economic environment and the degree of market development, write Thesis guarantee Development Bank started to run, the State Council decided by the People's Bank of Development Bank organized a financial bond issuance administrative procurement. Sent the share issue to ensure the development of bank credit funds need to support the development of the Development Bank, also accumulated valuable experience for the development of the bank's future market financing.
However, with the deepening of China's financial reform, administrative send purchase spurs drawbacks gradually revealed. In addition, from the external environment, the open market operations of the central bank needs to rely on efficient, large-scale bond market; commercial banks to exit the Exchange, also need a new place for investment, development banks to seize the historic opportunity, the People's Bank of positive support in the inter-bank market in September 1998 was the first to market issue debentures try
The Bond Bank Revelation: national primary securitization conversion
Development Bank financial bonds are regarded as a quasi-government bonds, despite different management style, but it is with the government bonds responsible for the country to raise significant amounts of long-term funds for construction of the functions.
Development Bank development has gone through two stages, ie before 1998 policy financial and development after financial. Inflection point began a reform of the Development Bank in 1998, and the guidance of the theory is the development of financial reform. Development Bank began under the auspices of the government, the study of the law of institution building, and work with the government to assume the obligations of the system construction, develop the market in the construction market in the initiative, to explore solutions to the two base a "long-term financing predicament, which is the historical mission of the development of financial theory.
On the other hand, as the Government's development finance machine chest, Development Bank relying instead rely on the credit of the state, focusing on efforts to promote market-building market behavior and excellent operating results, in order to achieve the goal of national credit securitization.
First, with the government co-construction market. Write medical papers Development Bank, under the guidance of the development of the financial market in the inter-bank market to issue bonds, the introduction of a large number of bonds innovative varieties, which play an important role for promoting and speeding up China's market-oriented interest rate reform process as well as an active bond market role. It also shows that construction in the market, we can not wait passively, should take the initiative to accept guidance and construction obligations, especially deposit market immature market environment, this initiative to guide the construction is particularly important.
Second, innovation, seek win-win. Development Bank of the innovative ideas are more stressed a win-win, win-win, win-win situation with the investment people and government regulators. Based on this, when the lack of market development, the Development Bank actively participate in and develop the market. Prior to the issuance of central bank bills, the Development Bank in the interbank market long-term with nearly half of the bonds market share. Development Bank Bond once become an important tool for the central bank open market operations, due to the active liquidity "marketable" in the market, welcomed by the investors. When market volatility in 2003, the Development Bank initiative to safeguard the overall situation, adhere scheduled to issue financial bonds, and adequately protect the interests of investors through innovation, to achieve win-win situation for issuers, investors and Pro control department.
Third, in the co-construction market development financial goals. The past 12 years, the development banks in the active construction market, and also achieve their business goals. The Three Gorges Project is one of the success stories of development bank financing, loan demand, the long duration of the high technical difficulty welfare function early in the project, a financing program encountered tremendous problems, the Development Bank give the utmost support. Spent a difficult financing, commercial banks have begun to enter. Corporate bonds issued in the Three Gorges Project, the lead underwriter also become a hotspot of competition. The Three Gorges cases, the financing of the development of the financial-oriented role fullest expression.
Three successful bond bank
(A) issuance of RMB bonds maturing
Development Bank "flagship" status in the Chinese bond market matures from first RMB bond issuance. Since September 1998, the National Development Bank in China's bond market has taken a successful footprints, from the first to market development line in the inter-bank market, boosting China's interest rate market in a relatively short period of time to complete standard series of bond issues, the establishment of China's bond market yield curve, provide important pricing benchmark for market infrastructure; the historic feats significance from the innovation issue floating rate bonds to address the plight of long-term financing instruments, to the nature of innovation has options option bonds, not only for the market to provide a hedging tool, but also for the development banks in subordinated bonds a good attempt. Development Bank every innovation on the market with a great role.
(2) foreign currency financing capacity is rapidly increasing
In recent years, to take full advantage of the domestic foreign exchange funds, reduce raising foreign capital from abroad, and to reduce the burden of foreign debt and the cost of corporate debt, the state has adopted relevant policies to encourage large and medium-sized state-owned enterprises replacement to the high cost of foreign debt, control of external debt risk. At the same time encourage the issue of domestic and foreign currency bonds for the adjustment of the structure of foreign debt. In September 2003, the Development Bank successfully issued the first domestic dollar bonds, creating domestic and foreign currency bond market. Development Bank issued a total of seven domestic bonds, foreign currency debt balance of $ 3.73 billion.
The successful issue of the domestic and foreign currency bonds, but also broaden the sources of foreign exchange funds of the Development Bank, domestic market dollar investment tools to write the titles of papers, some positive effect on the effective use of domestic and foreign exchange funds, inhibit settlement demand.
(C) to conduct RMB swap business, creating the RMB interest rate swap market
China's first RMB interest rate swap transaction was completed in October 2005, China Everbright Bank, to achieve a win-win goal. Development Bank to hedge the interest rate gap between the floating rate loans and fixed-rate debt issuance, reducing the cost of financing; Everbright Bank to develop a fixed-rate mortgage business by interest rate swaps. The transaction establishes the status of the derivatives market pioneer, builder, leader development banks in RMB. Since 2006, the Development Bank have launched a global dealer RMB interest rate swap period of up to 10 years of bilateral foreign exchange swaps and RMB offer, currently occupy more than 70% share of the RMB interest rate swap market, is the largest market makers; liter RMB swap market played a major market makers, and only a 10-year-quoted financial institutions.
(D) issuance of credit asset-backed securities, connectivity credit and currency markets in December 2005, the Development Bank successfully issued the first single credit asset-backed securities (ABS). The successful issuance of ABS products, both developed excellent financial operating results and social sharing, is of great significance to realize the rational allocation of financial resources for the deepening of the reform of the investment and financing system. The ABS products get through the credit market and the money market, the docking of two markets. It turned out basically unable to flow of credit assets converted into a high degree of mobility, standardization of securities that can be freely traded on the market for medium and long-term bank credit risk transfer assets to increase the proportion of direct financing of the capital markets, as well as deepen reform of the investment and financing system can serve to win.
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