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The characteristics of the development of the corporate bond market in developed countries

Author: SunJingDe From: www.yourpaper.net Posted: 2009-03-30 17:21:25 Read:
Abstract: This paper focuses on the characteristics of the financial system and the enterprise system with larger differences in the development of corporate bonds in developed countries, combined with China's actual situation, get some inspiration: the financial system of a country is an important influence on the path of the development of the corporate bond market; healthy development of the stock The market is the foundation of the smooth development of the corporate bond market timing; clear disclosure of the information system is the premise of the healthy development of the corporate bond market technology; science credit rating system is an important support for the healthy development of the corporate bond market.
Keywords: corporate bond market; characteristics; revelation

Corporate bond financing issued to investors, and promised to pay interest on a regular basis at a certain interest rate and maturity claim repayment of the principal debt obligations. The main body of the corporate bonds is usually limited liability companies and joint stock. Corporate bond financing has a low cost of financing, and does not affect the control of the Company, and other characteristics, from financing pecking order theory from the point of view of corporate governance and control over corporate external financing generally mainly to corporate bond financing.

main features of the development of the corporate bond market in developed countries

1. The United States. The rapid development of the bond market in the enterprise (company) is a distinctive feature of the world in the late 20th century, the development of the bond market. At that time, the United States and other developed countries in general, have established a mature modern enterprise system, corporate finance showing the characteristics described in the financing pecking order theory. 1956-1982 American Enterprise internal accumulation funds accounted for 61% of all funding sources, accounted for 23% of corporate bond financing, equity financing accounted for only 2.7%. In the 1970s, the U.S. high-yield bonds appear to promote the rapid development of the bond market in the United States, 2001, the balance of the U.S. corporate bond issuance over the outstanding loans of commercial banks, close to the total market value of shares of listed companies, which is 16 times the amount of stock issuance, the total bond The balance of 30%, accounting for 36% of the U.S. GDP. The main features of the U.S. corporate bond market development: (1) clear laws and regulations. Must follow the regulations of the U.S. corporate bond issuance and trading of the Securities Act of 1933, the 1934 Securities Exchange Act, the the Trust Securities Act of 1939, but these legal requirements of the issuance of corporate bonds registered only in order to full disclosure of information, rather than to limit the issuance of bonds. (2) the need for a credit rating. Almost all the issue of corporate bonds on the open market must be assessed after Standard & Poor's or Moody's credit rating. Generally only be recognized by the public company in order to issue corporate bonds, which called for the issuance of corporate bonds in the company stock has been publicly traded in the stock market for some time. Typically, a company is only in the stock market recorded only after the issuance of corporate bonds to obtain a credit rating. (3) The corporate bond market is clearly defined responsibilities of the parties involved. In accordance with the provisions of the bond issuer to fulfill its duty of information disclosure; the bond underwriting must have the qualification requirements of the U.S. Securities and Exchange Commission and the National Association of Securities Dealers, must comply with the relevant laws and regulations; Bond rating agencies must make the possibility of the company's bond debt repayment independent advice.

2 Germany. In the 1850s, the transport industry, led to the railway revolution started the wave of industrialization in Germany. Industrial Revolution also German banks and bond markets are closely linked, formed a unique financial system as the main universal banks. After the completion of the stage of industrialization, the German domestic product and capital soon oversupply situation, goods and capital-exporting country. At the same time, the German financial sector centralization trend of financial institutions. Operating banks, exchanges and insurance companies, the number of AG decreased from 915 in 1932 to 513 in 1938, but the average funding has increased by 28%. Centralization of financial institutions led to the emergence of the financial oligarchy, government involvement in banking convenience, and contribute to the completion of the task of the government bond issuance. After the Second World War, the collapse of the German economy, the market is in a serious state of confusion, the banking system was forced to implement the American banking system, Deutsche Bank, Dresdner Bank and commercial banks to be broken down into a number of financial institutions. After 1957, the need for the development of the national economy, the successor of the Deutsche Bank, Dresdner Bank and commercial banks, three big banks to restructure restored to pre-war state, the formation of the institutions of the European continent intensive and efficient banking system. In the years 1950-1967, the German social market economy, the implementation of the new liberalism, advocated a balanced deficit, less the total amount of the bond market. Since the 1990s, the German bond market developed rapidly, the main species include government bonds, financial bonds and corporate bonds. Among them, the rapid growth in the size of the financial bonds occupy the dominant position of the bond market. Due to complex procedures for the issuance of corporate bonds, high cost, coupled with the financial system more robust, developed indirect financing company to obtain loans more easily, so the issue of the number of small, in the bond market occupies a very small share has been. 1991, a net increase of issuance of bonds 558 million marks of 31.18 marks in 1998; the end of 1998, the nominal float market capitalization of corporate bonds in circulation only eight billion marks. Therefore, an important feature of the development of the corporate bond market in Germany: the corporate bond market has been underdeveloped corporate bond financing share of the total financing of the entire enterprise.
3 Japan. 1890 With the first corporate bonds the issuance (the issuer OsakaRailway). Then, the Japanese bond market is developing rapidly. The one hand, due to the frequent outbreak of the war, forcing the government bonds issued by the rapid expansion; the other hand, Japan's heavy industrialization development, in particular, requires a lot of long-term funds, a growing number of enterprises to raise funds through the issuance of bonds. Corporate bond balance in the late Taisho (1925) has more than the balance of the stock issued in 1992, is the pinnacle of the development of Japanese corporate bonds, corporate bonds accounted for 26.2% of the proportion of the entire amount of corporate finance. After the war, the Japanese bond types gradually increase, but the scale of the expansion of unhappiness. The establishment of long-term funding of the supply system and the main bank system, pushing Japan to form a dominant financial bonds, the bond market, less than 30% of the proportion of government bonds, the smaller corporate bonds. After 90 years of the 20th century, by Japan's domestic economic recession and financial crisis is a double blow, the heavy burden of non-performing assets of financial institutions in Japan, the decline in credit capacity, reduce the amount of financial bonds issued corporate bonds issued by the rapid expansion of the scale. After 1998, corporate bonds total more than financial bonds; 2002, accounting for 9.79% of the scale of corporate bonds in the bond market, the financial bonds was only 5.81%. An important feature of the development of Japan's corporate bond market: the main bank system for the development of the corporate bond market, in general, the slow development of the corporate bond market.

developed countries the development of the corporate bond market Enlightenment to China

The financial system of a country is an important influence on the corporate bond market development path. Of the existing financial system as a way of corporate finance, corporate bonds to finance the development of the market, with the more obvious path dependence. Germany's universal banking system with Japan's main bank system, allowing companies to obtain bank credit is relatively convenient, and even makes the bank largely determine the size and structure of the development of the bond market, which greatly affect the process of the development of the corporate bond market , the degree of development.

The healthy development of the stock market is the basis for the smooth development of the corporate bond market timing. Although the purpose of the corporate bond market and the stock market, the corporate bond market is a priority to the development, but in terms of the timing of the development of the stock market and the corporate bond market, the stock market is a priority in the corporate bond market. The only mature AG as the mainstay of the modern enterprise system, corporate finance behavior is consistent with the financing pecking order theory, be possible to make corporate bonds to finance larger than stock, will it be possible to establish a more developed corporate bond market. Enterprise system of China's current situation and financial institutional arrangements, the distance to vigorously develop the requirements of the corporate bond market is still a distance. Therefore, while promoting the development of the corporate bond market, to further standardize the development of the stock market.
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