whether in the exchange market or the inter-bank market, we often find that some corporate bonds adopt the strategy of mutual allocation of double varieties in the issuance process. The differences between different types of corporate bonds are generally reflected in the terms of bond issuance and related elements, such as the term of bond, rights-bearing terms, interest rate and interest-bearing methods, credit enhancement measures, etc., but the terms of issuer, issuance time and underwriter are the same. In theory, the terms of issuance are set by the issuer and the underwriter independently, and the regulatory authorities will not interfere in the examination and approval. Finally, investors choose products and types with suitable term structure according to their own investment needs.

a corporate bond can be issued in different varieties, with the same framework materials and main contents such as prospectus and issuance announcement documents. It is the same set of sealed documents when registered and filed with exchanges, banks and CSRC, and the same issuance approval is obtained, and it is also synchronized when roadshows are issued. Under normal circumstances, the prospectus of corporate bonds and the issuance announcement will disclose that the inter-variety callback mechanism is introduced in this issuance, which is used for the callback between the issuance quotas of different varieties. As for the specific way of callback, it involves the bookkeeping and filing mechanism when corporate bonds are issued.

the most common setting among different varieties is the difference in bond term and rights clause. As shown below, BMW Financial Co., Ltd. in 22, the first phase of directional debt financing instruments was issued in two varieties, one-year and three-year periods. If there are rights clauses, such as redemption clauses and resale clauses, the corresponding term will be different, such as setting a 2+1 year term and a 3+2 year term. In addition, the same term can also be set, but it can be divided into pure credit bonds and double varieties under the credit enhancement of guarantee companies; Or the same term, but divided into two varieties with redemption and resale clauses and without redemption and resale clauses; It can also be divided into two types: one-time repayment of principal and interest and annual interest. As for the variety strategy, the issuer can set it according to its own capital demand and the investment demand of market investors.

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for corporate bond issuers, the bond issuance period and amount will directly affect the debt structure of corporate bond issuers. Generally speaking, in addition to corporate bonds, issuers also have many financing channels, such as bank current loans (short-term loans and long-term loans), project development loans, financing lease loans, trust loans, entrusted loans, etc. Different financing instruments have different maturity scales and payment times, so issuers need to manage the bond structure at all times.

if the company's short-term financing ratio is too high, it may lead to liquidity risk, that is, a large amount of debts will be repaid in a short period of time, and the capital chain will be tight. If the company's long-term financing ratio is too high, it may lead to higher overall financing costs and larger interest expenses. Therefore, the management and adjustment of long-term and short-term debt structure make the issuer have the demand of issuing by varieties, and set different issuance terms according to their own debt structure requirements under the same approval to obtain funds with different maturities.

Corporate bond issuers are very sensitive to bond financing costs, especially private enterprises and listed companies. The coupon rate of bonds is on the high side, which not only affects the annual interest expense, but also affects the investors' views and expectations of the company in the market, considering that issuing bonds is an open market behavior, thus affecting the cost of all subsequent financing. This is also the reason why many companies would rather terminate the issuance than bear the excessive interest rate during the issuance process.

the issuer issues different types of debt financing instruments in the same period according to its own capital term requirements, for example, short-term varieties are used for short-term capital requirements to pay lower financing costs; Using long-term financing varieties for long-term financing needs can ensure the stability of future cash flow and avoid the high cost of timely financing in the future.

whether it is the exchange bond market or the inter-bank bond market, most investors in the bond market are institutional investors, such as self-operated banks, bank wealth management products, self-operated brokers, Public Offering of Fund and private equity funds. Institutional investors have their own requirements on the duration and concentration of capital investment, which can also be called risk preference of investment, such as the maximum amount of three-year bonds, the maximum amount of five-year bonds, the maximum amount of a single issuer, the maximum amount of enterprises in a single district and county, etc. The purpose is to manage risks. Even some institutional investors are only allowed to invest for three years or less, and do not invest in perpetual bonds. If the issuer only issues five-year products, it will not meet the needs of investors, which is not conducive to the smooth financing, and the financing cost will also increase.