Risk Warning In Front Of ‘fast Fast’ Of Corporate Bond Market

The corporate bond market has a strong development in the past time, even leaving the size of government bond issuance. However, along with the 'fast-growing' of the corporate bond market, it is alarming risks. Enterprise bond issuing government bonds of corporate bonds (TPDN) in recent years The rapid growth and gradually abroad to issue government bond issuance (TPCP), which has never happened before 2018., in 2018, TPDN successfully issued VND 224,000 billion, while VGBs reached 190,000 billions dong. In 2019, TPDN issued successfully reached VND 312,000 billion, the BGGP issued nearly VND 300,000 billion

. In 2020, the total volume of VND 436,000 billion was issued by TPDN, and the Government bond issued about VND 330,000 billion. In the first 6 months of this year, the amount of TPDN was successfully issued by nearly VND 200,000 billion, while the Government bond issued about VND 140,000 billion. The corporate bond market had a strong development in the past
(Artwork: KT) However, along with the "fast" market of the TPDN market is alarming risks. Mr. Nguyen Tri Hieu, Finance and Banking Specialist, said that the structure of buying corporate bonds in the primary market mainly belongs to securities companies, banks and a few professional personal investors. "In the US, the banking system divided into two segments including commercial banks and investment banks. In particular, only investment banks are allowed to support bond issuance. In contrast, in Vietnam, banks are very multi-functional, and are both commercial banks and investment banks, "said TS. Nguyen Tri Hieu said. According to Mr. Hieu, the small bonds are paid by the Bond Guarantee, the investor purchased the bond of the publisher, in the case of risks, the publisher does not pay debts, The bank will pay. Thus, the majority of the remaining bonds are only underwritten
That is, if the issue does not run out, the bank will commit to buy all the remaining bonds. "Banks are only enterprises providing services, enjoying service fees from enterprises released without responsibility Regarding the enterprise whose refunds are rooted and interested when they are due or not. This means, risks with huge investors if enterprises release debt. In general, the TPDN market is hidden many risks due to Covid-19 epidemics, making businesses unable to work but still borrow money. And the risks are rushed into the owner, "said Nguyen Tri Hieu expert to warn. With the hot development over the past time, it has been consecutively warning bells from experts, management agencies like the Ministry Finance, the Ministry of Construction recommends that investors need to consider risky when deciding to invest in corporate bonds. In particular, it is necessary to be extremely cautious when deciding to buy bonds of enterprises with poor financial situation , Business losses or businesses who issue no guaranteed assets. Dong Nguyen Hoang Duong, Deputy Director of Finance Departments of banks and credit institutions and the Ministry of Finance noted: "For bonds available Assets are assured but stocks have not been listed on the market, the risk cannot determine the guaranteed asset prices of that stock. Or that stock is not liquidity in the market, when the business occurs Problems, investors will lose their investment capital ". Need to severe penalties, deterrent Caoc Do Ngoc Quynh, total damage to Vietnam Bond Association (VBMA) comments, TPDN lead channel is very effective, but not for all, but only for businesses with efforts to build brands, images, quality management, guaranteed Chi certainly, taking advantage of the capital lead channel, to mobilize and develop stronger. Dong Do Ngoc Quynh, General Secretary of Vietnam Bond Association (Photo: KT) "on major markets in the world, TPDN market is not for small and medium enterprises. For businesses who want to participate in the bond market, must meet certain criteria and conditions of the quality of issuance organizations, such as operating and prestige in the market and management capacity. , can be released in TPDN ", General Secretary VBMA said. Mr. Do Ngoc Quynh, TPDN market developed hot over the past time, hiding many consequences for investors. Therefore, bonds issued in the market, despite in individual or public forms, they need an intermediary organization, a need for bond ownership representatives, which is a capable financial intermediary organization, Monitoring the compliance of enterprises according to the offering conditions. They are also responsible for the legal procedures, ensuring the rights of investors. "If the enterprise does not comply with the conditions of offering, these units must immediately activate the termination termination term , Immediately request businesses to buy bonds. If the business does not immediately acquire bonds, immediately promote the legal-related procedures, to tighten and handle assets, "said Do Ngoc Quynh Title X

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