? There are three main types of bonds in the current bond market, namely credit bonds, convertible bonds and government bonds.

Among them, credit bonds refer to bonds issued by entities other than the government with agreed upon fixed principal and interest repayment cash flow.

Credit bonds include corporate bonds, medium-term notes, corporate bonds, short-term financing bonds, asset-backed securities, subordinated bonds, etc.

Credit bonds are mainly divided into financial credit bonds and non-financial credit bonds according to the issuer.

The main issuers of financial credit bonds are banks, insurance companies and securities companies, among which the majority are subordinated bonds that supplement capital.

The originators of non-financial credit bonds are mainly non-financial enterprises.

The domestic credit bond market began in 1984. The State Council issued and implemented the "Interim Regulations on Enterprise Bond Management" on March 27, 1987, ushering in the true first year of domestic credit bonds; in 2005, short-term inter-bank financing bonds appeared.

Marked the emergence of a standardized short-term financing market; the issuance of general corporate bonds in 2007; the birth of mid-term note registration in 2008; the emergence of ultra-short-term financing in 2010; the birth of directional instruments in 2011; the emergence of private placement corporate bonds in 2012; the issuance of corporate bonds in 2015

The promulgation of the Exchange Bond Market and Management Measures completely stimulated the vitality of the exchange bond market, and the scale of corporate bond issuance experienced explosive growth.

The proportion of private enterprises in credit bond issuance has increased significantly.

The main sources of funds for investment in the credit bond market are residents, enterprises and financial institutions.

Through securities firm asset management, private equity funds, trust financial management, securities firm self-operation, public fund special accounts and general funds, etc.

? The reason why an enterprise needs financing is because it needs to be used for daily operations, equipment technology transformation, new production capacity, asset reorganization, strategic investment in industries, or other things. The financing needs can be calculated through the daily operations of the enterprise.

With financing needs, companies need to find financing channels, which are mainly divided into bank loans, debt financing and equity financing.

Bank loans are financing through credit or bills.

Debt financing refers to domestic and foreign bonds, non-standard or other entrusted and trust loans, financial leases, and equity pledges through non-bank financial institutions.

Equity financing is through public listing or private placement, while non-public financing is through VC/PE, industrial investment or mergers and acquisitions.

? With credit comes risks. In addition to traditional default risks, the main risk of credit bond investment is valuation risk.

Default risk has two dimensions. On the one hand, it is the safety of investment, and on the other hand, it is the recovery situation after losses occur. Default risk will be reflected in the rating.

Valuation risk also involves two levels: one is valuation fluctuations caused by changes in ratings or credit qualifications, and the other is the increase in liquidity premiums caused by changes in market sentiment.

? Credit rating is divided into three stages: pre-investment rating, mid-investment management and control, and post-investment tracking.

Judging from the current credit bond market, for example, credit bond financing and short-term loan financing of real estate companies are all on the decline.

In the context of policy tightening and negative impacts, the high-turnover model of real estate companies is not suitable, and sustained and steady operations with low leverage will become the norm.

This also shows that economic fluctuations are beyond expectations, policies are also beyond expectations, and corporate refinancing capabilities have dropped significantly, which has a greater impact on the credit bond market.

Although the issuance of credit bonds increased in the third quarter of this year and the number of types of issuance also increased, the net financing amount also decreased month-on-month in the real estate industry.