"Seesaw War" Of Bond Extension: The Game Of "Time For Space" Between Issuers And Holders

Default, credit risk.

The 21st century economic reporter has noticed that many credit bond issuers seek redemption through rollover, and various game stories between investors and issuers are also being staged.

According to the news of the "pre-18th century sale back of Ruyi group" and other private investors, the "pre-18th century sale back of Ruyi group" was also reported, and the "pre-18th century sale" of Ruyi group was prevented.

On September 11, the "11 oceanwide 02" issued by Oceanwide holdings rose sharply after a 30% drop the previous day. On the same day, "11 oceanwide 02" rose more than 36% in the intraday trading, and finally closed up 19.34%.

What triggered the ups and downs of the secondary bond market was the news that Oceanwide holdings was facing the pressure of cashing. Recently, it sought to replace the maturing one-term medium-term note "15 oceanwide mtn001" and negotiated with investors.

"At present, the structure of the credit market is significantly differentiated, and the market risk preference is declining. It is difficult to improve the market preference in the future, and the structure will continue to differentiate." On September 11, the director of fixed income of a large public offering fund in South China told the reporter of 21st century economic report.

Bond rollover

"On the one hand, the holders are worried that there are still variables in the subsequent repayment of the issuer after agreeing to the rollover, but if they do not agree to the rollover, they are also worried about the huge capital pressure brought about by the direct default of the issuer. Therefore, we are often in the process of a game, and the final result is not the same. " A bond fund manager of a private equity firm in Beijing told the 21st century economic report.

In fact, many bonds have been extended before. What has caused a great stir in the market recently is that the "oceanwide system" has also encountered difficulties in cashing funds. The bond "15 oceanwide mtn001" issued by Oceanwide holdings is negotiating with its holders on bond replacement.

According to the data, the issuance scale of "15 oceanwide mtn001" is 3.2 billion yuan, with a coupon rate of 6.9%. It will expire on October 14 this year.

In the e-mail sent to bondholders by webpass, Oceanwide holdings also expressed "sincere words" and hoped to communicate with the holding institutions on the issue of bond replacement.

Oceanwide holdings also made a response, saying that at present, it is only the communication of cashing scheme, which is a routine action. At present, the company is taking various measures to actively raise funds in various ways to ensure the smooth and smooth settlement of the cashing of the medium bill.

There is no answer as to how the game result between Oceanwide holdings and bondholders will be interpreted. In fact, not all issuers can realize bond rollover as they wish, "time for space".

On September 10, Everbright Bank announced the results of the holders' meeting of "17 Huawen media mtn001" and "18 Huawen media mtn001".

Everbright Bank announced that the "17 China news media mtn001" holders' meeting took effect, but seven motions were not passed. Among them, the "motion on agreeing the issuer to pay part of the principal and full interest and the extension of the remaining principal when the current term medium-term notes are due" has not been passed.

According to the data, the issuance scale of "17 Huawen media mtn001" is 1 billion yuan, with a coupon rate of 5.45%, and the term is three years, which will expire on November 8 this year. The issue scale of "18 Huawen media mtn001" is 1.3 billion yuan, the coupon rate is 6%, and the term is 3 years, and it will expire on April 4, 2021.

The negotiation extension has exposed the financial difficulties of Huawen group. According to this year's interim report data, the net profit of Huawen group during the reporting period was 161 million yuan.

"The company will try its best to raise funds for repayment, and will also keep in touch with the holders. The follow-up progress will be subject to the announcement." On September 11, relevant people from Huawen group told reporters of the 21st century economic report.

"Due to the impact of the epidemic, many companies do have capital pressure, and the situation of bond rollover is increasing." According to the above-mentioned institutions.

Previously, the reporter of 21st century economic report also learned exclusively that Shandong Ruyi had negotiated with investors to provide sufficient process rules for "withdrawal of resale" when dealing with the upcoming "18 Ruyi 01" bond resale.

All kinds of rules about withdrawal of resale are the embodiment of the game between Shandong Ruyi and bondholders. However, Shandong Ruyi had twice postponed the payment of 75 million interest of "19 Ruyi technology mtn001" earlier, which consumed the trust of bondholders.

"Ruyi doesn't want investors to sell back, but we have." An institutional holder of "18 Ruyi 01" told the 21st century economic report, "we now have a pessimistic expectation. Maybe they turn to the private equity platform to issue an announcement, that is, they are ready for default."

Bond defaults exceeded 100 billion during the year

Overall, this year's credit default continues to occur, but compared with the same period last year, the number of enterprises defaulting for the first time is less.

Wind data showed that as of September 11, 93 bonds had defaulted this year, involving an amount of 110.801 billion. This year, 16 companies have defaulted for the first time, compared with 29 in the same period last year.

"On the whole, under the influence of the epidemic, the role of urban investment bonds in stable growth is more prominent, and the default risk is reduced, but the default risk of industrial bonds under the impact of the epidemic has increased. Subdivided into different industries, under the influence of the domestic epidemic, film and television media, business retail, port logistics and other industries are interrupted, and the book goodwill of some enterprises and the impairment risk of investment real estate increase; under the influence of the overseas epidemic, the risk of loss of orders and asset impairment of the main body with high proportion of overseas income and overseas assets increases. " The director of fixed income of a public offering fund in Beijing was interviewed.

Century securities analysis points out that there is still a lot of pressure on credit debt default in the second half of this year. First, from the perspective of historical default law, default outbreaks are mostly concentrated in the second half of the year. Second, the loose financing environment in the first half of this year may only delay the impact of the epidemic on enterprise credit risk.

Feedback from institutions interviewed shows that the credit risk of the bond market in the second half of the year still needs to be vigilant.

"Under the impact of the epidemic, economic growth is declining and corporate fundamentals are weakening. However, the bond market default shows a marginal slowdown trend, but the release of default risk does not mean that the trend of credit risk is weakened." Yan Yan, chairman of China integrity international, said.

In its view, the number of new default issuers decreased significantly compared with the same period last year, which was mainly due to the improvement of financing environment and the mitigation of risks by some issuers through rollover, off-site cashing and selling back. The business operation did not improve substantially. On the contrary, most enterprises were affected by the impact of the epidemic and the cash flow of operating activities deteriorated significantly. In view of the high maturity pressure of credit bonds in the second half of the year, some issuers have greater repayment pressure under the impact of the epidemic, and the default rate of the bond market may rebound.

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