118 default debt unlisted companies accounted for 80% of vulture funds and other competing for junk debt
Original title: 118 non-listed companies with default bonds accounted for 80% of bonds. “Vultures” rushed to eat garbage bonds. Ye Maisui Kangde defaulted, Seiko Group defaulted, and large groups defaulted . Bond default cases are still rapidly expanding.
According to straight flush statistics, there were 118 defaulted bonds this year, involving 52 entities and 629 in value.
2.2 billion, of which 26 default subjects were added, and private enterprises remained the hardest hit area.
The rapid growth of defaulted bonds, on the one hand, are worried “creditors,” and on the other, they are predators, and there are many myths in the market that turn waste into treasure.
The principal recovery rate is about 10.
77% Since the default of the 11 Super Japanese bonds, the number and size of defaulted bonds have increased significantly, and the total amount of defaults is approaching 300 billion yuan.
Since this year alone, there have been 118 involved 52 entities and 629 involved.
Frequent defaults made bond market investors embarrassed, and there was a public fund that broke the fund’s net worth due to the debt of a shoe-making enterprise, causing a tragedy of being forced to wind up.
But the arsenic of the other, the honey of the ru.
In the default bond market regarded as junk, there are many miracles of crows turning into phoenixes, and some institutions even specifically live on default bonds and are regarded as “vulture” foragers.
CITIC believes that the acquisition of defaulted bonds usually occurs in the debt restructuring process after a bond default. One or a few institutions acquire most or all of the issuer’s defaulted bonds and act as creditors, issuers, guarantors, etc.Conduct unified negotiations.
The acquisition of default bonds can transfer the risk of recovering non-performing bonds from the original bond holders to professional institutions such as AMC.
For the original holder, referring to the lengthy litigation process, this processing scheme is more flexible and faster.
However, the institutions that play the role of “savior” are not “superheroes” who are not seeking fame and fortune, and the prices of defaulted bonds are discounted, or even discounted, and it is not uncommon to dispose of them.
In the case of Air Force 11 super-Japanese debt default reorganization, several agencies that played the role of “savior” had earned rewards more than 10 times in a year.
”The trading of prey default bonds is not uncommon, and foreign countries have long had special vulture funds.”
The logic of investment is that when a company’s bid information appears, the asset price will be mispriced.
The maturity price of a certain bond should have been 110 yuan, but now there is a risk of default, and the market panic will hit the price to 50 yuan. If the bond is promised in the future or the asset is disposed of, the disposal price is higher than the purchase priceprofit.
Not to mention that general corporate bonds, corporate bonds, and even some national debts may be killed by mistake. The uniform was killed by a Saudi journalist. Saudi Arabia ‘s national debt has plummeted. We bought the bottom, and in a short time, the return exceeded 20%.
This wave of defaults will bring unprecedented opportunities to China’s emerging special opportunity funds.
“The fund manager of a fund company in Shenzhen said.
Although the market is initially active, the recovery rate of defaulted bonds is generally not high.
Shen Wanhongyuan Meng Xiangjuan said that as a whole, since 2014, the total amount of bond defaults has been approximately 272.7 billion US dollars, and the total redemption principal is 293.
7.2 billion yuan, with an overall principal recovery rate of approximately 10.
Among them, the highest recovery rate in 2014 was 84.
7%, due to bond defaults that began to occur in that year, corporate redemption expectations and ability to substitute, and only 6 bonds defaulted that year, involving an amount of 13.
4 trillion, of which 10 trillion and 11 super-Japanese bonds were redeemed at the end of 2014.
Since then, the recovery rate has declined precipitously.In 2018, the recovery rate was only 5.
The situation in 2019 has not improved significantly. Until now, there have been 6 bonds paid, of which 5 are self-paying and 1 guarantor is paying on their behalf.
Four bonds are 100% repaid, while two are partially paid.
The payment situation of each industry is also very different.
Defaults were recovered in eight industries and none in nine industries.
Among the industries with recycling, the recycling rate of downstream industries such as computers, household appliances and leisure services is higher, and the relevant bonds have achieved 100% redemption. The recycling rate of middle and upstream industries such as mining, steel, chemical, machinery, building decoration, etc. has been reduced., Agriculture, forestry, animal husbandry and fishing industries reset 0.
The recovery rate of state-owned and state-owned enterprises is relatively high, reaching 20.
4%, followed by local state-owned enterprises, public enterprises, and private enterprises, with less than 10%.
Of the defaulted bonds, approximately 216.5 billion were issued by non-listed companies, and approximately 56 billion were issued by listed companies. The default amount of non-listed companies accounted for nearly 80%.
The recovery rate of listed companies exceeds 30%, which is much higher than the non-listed companies’ 6%.
The average default period is about 1.
52 years “At present, the reorganization of domestic bond defaults is still in its infancy. Although many institutions are very concerned about this business, the institutions that can really handle similar cases are still limited.
At present, there are three main types of participating institutions: one is the ability to set up or participate in a default reorganization institution. Such institutions are usually licensed asset management companies with conventional backgrounds and resources and background replacements. The other is institutions familiar with the upstream and downstream industry chains.Such institutions have a more professional judgment on the quality of assets, which is often referred to as a “leakage picker”. Third, institutions familiar with bank mortgage bond packages are relatively easy to identify.
“At the same time, regulators have also noticed 苏州夜网论坛 market demand and officially launched default bond transfer services.
In May this year, the CSRC instructed the Shanghai Shenzhen Stock Exchange in conjunction with China Clearing to issue the “Notice on Provision of Transfer Settlement Services for Certain Bonds During the Listing Period” and “Regarding the Provision of Transfer Settlement Services for Certain (Non-Public Issuance) Bonds During the ListingNotice of Matters.
The abundance and improvement of disposal methods is obviously conducive to the subsequent recovery of default bonds.
Even some people are already expecting that the Chinese version of the high-yield debt market is gradually taking shape.
”The average default period for domestic defaulted bonds is about 1.
The average default period for the electrical equipment industry is the 苏州桑拿网 longest, up to 3.
In 1987, other deadlines were limited to machinery and equipment, national defense industry, steel, textiles and clothing. The deadlines were real estate, automobiles, non-bank finance, media, comprehensive, and the real estate industry had the shortest average default period, about 0.
The average default period of a Sino-foreign joint venture is the largest, and the average number of default periods of a Sino-foreign joint venture is due to the earlier default time, which leads to the average growth rate of the default period.
First, local state-owned enterprises and central enterprises, and then private enterprises.
The average default period for non-listed companies is approximately 1.
In 7 years, the average default period for listed companies is about 0.
In 8 years, the average default period of non-listed companies is much higher than that of listed companies.
“Meng Xiangjuan said.
”But defaulted bonds are risky assets after all. It is not easy to swallow this super high-yield cake in one bite, and sometimes the embarrassment of self-defeating happens.
The high yield of defaulted bonds is gradually reduced. The identification defect is high. The nature of investment has changed from bonds to equity. Although the low price has reduced some risks, it is still difficult to change the nature of its knife-edge bloodletting. Some institutions even regard it as aMarket share, investing in 6 default projects, as long as there are 2 successful, you can cover the cost of 6 projects, but the end result is actually not as simple as imagined.
“Chen Hua (pseudonym), the head of a private equity firm in Guangdong, told a 21st Century Business Herald reporter.