Bond Defaulting Agencies Frequently Recruit: Fund Managers "Conservative Supremacy"

Credit default market again.

In the evening of December 2nd, a notice of default on Peking University Founder group attracted market attention. On the same day, a seat map of the creditors' assembly of Dongxu group also triggered heated debate in the market.

On the evening of December 2nd, the supernatant announced that as at the end of the day, Peking University Founder Group Corp had not yet received the interest payment payment made by the Peking University Founder Group Corp, and the issuer could not pay the interest of the "19 party SCP002". The total issue of "19 founder SCP002" is 2 billion yuan, with a maturity of 270 days and a bond interest rate of 4.94%.

A well-known school enterprise default, the news hit the "credit" of the credit debt market.

In fact, not long ago, the Dongxu photoelectric two bond default triggered a chain reaction, which also let the market once believe in disillusionment.

On the 18 day of last month, the Shanghai clearing house also announced that it had not received the "16 Dongxu photoelectric MTN001A" issued by Dongxu photoelectricity and the payment and payment of the two medium-term notes of the "16 Dongxu photoelectric MTN001B".

A seating map of the creditors' meeting of Dongxu group on November 29 shows how strong the faith has been.

According to the twenty-first Century economic report, the seat graph shows that the institutions involved in the creditors meeting covered nearly 200 institutions such as banks, brokerages, trusts and public funds.

In fact, since last year, there have been frequent incidents of credit default, involving more and more institutions. Against this background, the allocation operation of investment institutions is also affected.

Institutional recruitment

"2020 is still a year of continued credit risk." In December 3rd, fan Wan Yuan, deputy general manager of fixed income financing headquarters of Shen Wan, told the business reporter in twenty-first Century.

There is a data worthy of attention. As of now, the number of default and total default amount of listed company bonds has exceeded that of last year.

Wind data show that in 2019 as of December 3rd, 159 or 125 billion 698 million scale bonds were defaulted, while in 2018, the two figures were 125 and 120 billion 961 million respectively.

Against this background, risk is also gathering. In fact, with the growth of the number of default, the reports of institutional recruitment are more common.

For example, many of the public funds have been listed on the list of defaultable bonds, and the corresponding performance has also been greatly affected. Included in the fusion of pure debt, due to the "14 rich birds" breach of contract last year, nearly 50% decline, the Chinese business double bond profit bond, due to the position of "11 Katie MTN1" and "15 credit debt" caused by fluctuations in the net value. It even includes subsequent incidents of mutual accusation by risk management agencies.

For example, in the first half of this year, the liquidity pressure of non banking institutions has also been affected in the industry, which involves the risk of special products of some agencies, which has aroused the attention and attention of regulators.

With the current Dongxu photoelectric bond default as an example, in the November 29th east Xu group creditors conference, it involved more than 100 financial institutions all over the country. In twenty-first Century, comic reporters found that 4 companies including the Bank of China fund and the galaxy fund.

A person close to the meeting told the economic news reporters in twenty-first Century, "the two companies of the Bank of China fund and the galaxy fund relate to the public offering products. However, because of the fact that the position is not disclosed in the list, it can not be querying through open data.

"For the time being, it is not clear about the relevant matters." In December 3rd, a bank of China fund related person said.

It is worth noting that with the gradual normalization of bond defaults, the market consensus has been gradually formed. Our reporter also understands that the current institutions have raised requirements in risk control, and the business chain involved includes many related links of the bond business.

"Regulation is tighter now, and compliance is stricter. It is more demanding in screening projects. " In December 3rd, a public fund official in Beijing told the business reporter in twenty-first Century.

Conservative attitude

"Now, if the company is very strict, we also attach great importance to risk control." A credit debt researcher told the twenty-first Century business news reporter.

In fact, in twenty-first Century, the economic report learned from many public fund holders that many fund managers have changed or changed this year. Part of the reason is the team adjustment due to the "Recruitment" problem.

"For credit debt, we are temporarily conservative." The chief executive officer of a large public offering fund in Beijing said: "there are plenty of funds in the market, but few assets are suitable. The price of long term and highly rated bonds has been more expensive. In the course of economic exploration, there are frequent incidents of bond defaults, so the credit sinks will not be considered for the time being.

The attitude of the former director also reflects the current market situation to a certain extent. It is also a key word mentioned by many bond investment institutions.

Wei Fengchun, chief macroeconomic strategist at the time fund, pointed out: "the view of the bond market is still cautious. The central bank has lowered the interest rates of OMO and LPR, and the mood of the market has improved. At the end of the quarter and the end of the year, the money market tends to be tight. The economic resilience is still somewhat different from that of the market. Last week, the long term interest rate of the Treasury bond was larger than that of the short end, but the market was still the opposite.

For credit debt, there is clearly differentiation.

"Our overall position is mainly based on interest rate debt and relatively low positions." The director of fixed assets collection said.

"Subsequent Credit stratification will be more obvious, and even now it may be AA grade bonds as a landmark, now turn to AA+ grade bonds to make a dividing point. In the future, AA+ class bonds will also be split. It is possible that some AA+ class issuers with relatively weak qualifications will be more difficult to issue next year than this year. A large brokerage underwriter told the twenty-first Century business reporter.

In November 27th, Moodie released a report that the credit situation of China's non financial enterprises in the next 12 months will be negative as China's GDP growth slows down and Sino US trade frictions persist.

For most of the enterprises Moodie commentated, the negative impact of China's non-financial enterprises will be eased. However, credit differentiation among industries will intensify, and the analysis of individual issuers will become more important. Cai Hui, senior vice president of Moodie, said.