In response, the reporter contacted Xinhua Fund, but as of the time of publication, Xinhua Fund did not respond to the incident.
A bond manager at a public offering in Shanghai said. The liquidity of private enterprise credit bonds is not high. The occurrence of default further affects the liquidity of many bond clients. At this time, in order to relieve liquidity pressure, some managers can only sell bonds without default to realize liquidity.
In fact, Xinhua Funds trampling thunder default debt is not only a special account, but also Kangdesins recently boisterous default debt is held by its Xinhua Funds public offering and heavy warehouse.
According to the latest quarterly report of the first quarter of 2019, we can find that Xinhua Funds bond base, Xinhua Enhanced Bond, holds 8.295 million yuan of Kangde New Bond, accounting for 18.61% of the funds net asset value, which is the first heaviest warehouse bond.
In terms of credit default, according to the fund managers quarterly report, in terms of the number of first-time defaulters, there were 9 real defaults in the first quarter, and the number of defaults declined more than in the third and fourth quarters of 2018, but still greater than in the first quarter of 2018.
In fact, since last year, there have been frequent incidents of funds Thunder-struck default debt, and from the performance point of view, some of the poor performance of the debt base is affected by default debt.
For example, in 2018, because of the thunderstorm 14 wealthy birds, China Rongfengs pure debt suffered heavy losses, with A and C shares losing 48% and 39%, respectively, underpinning the same debt base, thus encountering redemption by institutions, which was liquidated on December 12 last year.
There are also Chinese businessmens double bonds, which fell by more than 30% in 2018 due to the thunderstorm of 15 Huaxin Debt and 11 Kaidi MTN1.
Mainly related to the environment, credit easing period, many fund managers close their eyes and leverage to buy credit debt, but once the tide ebbs, they know who is swimming naked. Exchange fund is a securities firm consolidation analyst said.
However, in May this year, the SFC guided the Shanghai and Shenzhen Exchanges to issue the Notice on Matters Relating to Transfer and Settlement Services for Certain Bonds during the Listing Period, and made arrangements for the transfer, settlement, investor appropriateness and information disclosure of specific bonds such as defaulted bonds.
This means that bonds can be transferred after default, and liquidity will be greatly increased.
In fact, these asset management products are mainly affected by liquidity of defaulted bonds, but after the exchange opens a platform for the transfer of defaulted bonds, it may bring opportunities to improve liquidity of some defaulted bonds, but the key also depends on whether the market has a vulture institution that picks up junk bonds and the specific quality of related bonds. In fact, some default issuers have better investment opportunities after restructuring. The consolidation analyst said.
Source: Responsible Editor of Economic Observation Network: Ren Hui_NBJ9607