11. Corporate bonds and corporate bonds
– Issuing entity: Corporate bonds are bonds issued by joint stock companies or limited liability companies; corporate bonds are bonds issued by institutions affiliated with central government departments, wholly state-owned enterprises, or state-controlled enterprises.
– Pricing: Corporate bonds adopt an approval system, which is reviewed by the China Securities Regulatory Commission, and the issue price is determined by the issuer and sponsor through market inquiry; corporate bonds are reviewed by the National Development and Reform Commission.
– Purpose: Corporate bonds are bonds issued by the company according to the specific needs of business operations. The company decides how to use the bond issuance funds; among corporate bonds, the use of bond issuance funds is mainly limited to fixed asset investment and technological innovation and transformation, and is related to Projects approved by government departments are connected.
– Credit: The source of a company’s credit is the asset quality, operating conditions, profitability, etc. of the bond-issuing company. Therefore, the credit ratings of corporate bonds vary greatly, and the bond prices and bond issuance costs of each company are also significantly different; corporate bonds pass The “state-owned” mechanism implements government credit, and implements the guarantee mechanism through administrative enforcement. The actual credit rating is not much different from other government bonds.

12. Non-financial enterprise debt financing instruments: refer to securities issued by non-financial enterprises with legal personality in the inter-bank bond market, with an agreement to repay principal and interest within a certain period of time. The current types of debt financing instruments include short-term financing bonds, medium-term notes and collective notes for small and medium-sized enterprises.

13. Short-term medium-term notes: short-term financing bills and medium-term notes. “Short-term financing bills” refer to securities issued and traded by non-financial enterprises with legal personality in the inter-bank bond market (that is, purchased by domestic banks but not issued to the public) and agreed to repay principal and interest within one year. . “Medium-term note” is the abbreviation of “medium-term note”, which refers to a debt financing instrument issued by a non-financial enterprise with legal personality in the inter-bank bond market and agrees to repay principal and interest within a certain period of time. Its issuance period is more than 1 year, usually 3-5 years.

14. Inter-bank bond market: The national inter-bank bond market refers to the bond buying and selling of financial institutions such as commercial banks, rural credit unions, insurance companies, and securities companies relying on the National Interbank Funding Center and the China Treasury Depository and Clearing Corporation. and repurchase market. The inter-bank bond market has now become an important part of my country’s bond market. Most of the policy financial bonds of book-entry treasury bonds are issued and traded on this market.

15. Inter-bank lending market: The inter-bank lending market, also known as the inter-bank lending market, refers to the market for short-term financing between financial institutions in the form of currency lending. In layman’s terms, it is a market where financial institutions lend money to each other.

16. “Money”: The word “money” is often used as a metaphor for the central bank’s monetary policy. The monetary policy adopted by the central bank to reduce credit supply, raise interest rates, and eliminate inflationary pressure caused by excessive demand has become a tightening monetary policy. On the contrary, the monetary policy adopted to prevent economic recession by increasing the supply of credit, lowering interest rates, promoting increased investment, and driving economic growth is known as monetary easing.

17. Central Bank: The central bank is the highest monetary and financial management institution of a country and occupies a dominant position in the financial system of various countries. The functions of the central bank are to formulate and implement monetary policies, maintain financial stability, and provide financial services. The business of the central bank is non-profit. my country’s central bank is the People’s Bank of China (referred to as the “central bank”).

18. OTC: OTC (Over The Counter) is the “over-the-counter market”, also known as the “over-the-counter market”. A long time ago, banks also engaged in stock trading business: because they sold stocks to customers over the bank counter, this market was called the over-the-counter market. Nowadays, it generally refers to the market that trades outside the exchange, and also It’s called the over-the-counter market.

19. Credit enhancement: Credit enhancement means improving credit. Bond issuers can use various credit enhancement methods or measures to improve their own credit ratings, enhance bond credit, reduce bond default rates or reduce default loss rates, thereby reducing the default risks and losses borne by bond holders. By improving credit enhancement, companies with lower credit ratings can obtain financing, and bond investors also receive multiple protections. There are various means of bond credit enhancement, among which third-party guarantees, mortgage and pledge guarantees, bond insurance, bond trusts, and credit reserves are the most common.

20. Counter guarantee: Counter guarantee is also called “claim guarantee”, repayment agreement or letter of guarantee. It refers to a guarantee set up to protect the realization of the debtor’s right of recourse after a guarantor other than the debtor assumes guarantee liability in the future. For example, a guarantee company or a guarantor has guaranteed your loan. If you fail to repay the loan, the guarantee company or guarantor will be liable for reimbursement, so they need you to provide them with certain assets. To protect your own rights and interests, this process is counter-guarantee.