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Why is the interest rate of corporate bonds only a few percentage points higher than that of bank loans of the same term?
In real life, bonds are often issued, and the issuance of bonds is often affected by some factors. What are the influencing factors of corporate bond interest rate? What are the factors that affect the interest rate of corporate bonds? Come and look down with Bian Xiao.

What are the influencing factors of corporate bond interest rate? What are the factors that affect the interest rate of corporate bonds?

The interest rate level of bank savings deposits in the same period. State regulations on bond interest rates. The affordability of the issuing company. Credit rating of the issuing company. Other conditions for bond issuance. Other bond interest rates, bond market conditions, national financial policies, etc. Corporate bonds refer to securities issued by the company in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time.

(1) Interest rate level of bank demand savings deposits in the same period.

Bank savings and bonds are two forms that investors and residents can choose. Generally speaking, it is considered from two aspects: high income and low risk. Because the credit of bonds is not as good as savings, generally speaking, the interest rate of bonds should be slightly higher than that of savings deposits in the same period. During the same period, the bank deposit interest rate is the lower limit of the corporate bond interest rate.

(2) State regulations on bond interest rates.

The current "Measures for the Administration of Corporate Bonds" stipulates that the interest rate of corporate bonds shall not be higher than 40% of the bank's resident time deposit interest rate for the same period. This is the upper limit of corporate bond interest rate.

(3) The affordability of the issuing company.

In order to ensure the repayment of principal and interest at maturity and the credit standing of the issuing company, it is necessary to make economic benefits of the investment project and live within our means. The expected return on investment of investment projects is the basic decision-making factor of bonds.

(4) the credit rating of the issuing company.

If the issuer has a high social reputation and good credit, it can lower the interest rate accordingly, otherwise it can raise the interest rate accordingly.

(5) Other conditions for bond issuance.

If the bonds issued are accompanied by mortgage, guarantee and other guarantee clauses, the interest rate can be appropriately reduced, otherwise it should be appropriately increased.

(6) Interest rates of other bonds, bond market conditions and national financial policies.

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