A Study of Existing Problems and Improvement Measures in Credit Risk Management of Fixed Income Securities

Wei Cui

doi:10.30560/rfm.v6n1p71

Wei Cui Founder Securities Co., Ltd, Beijing, China

DOI: https://doi.org/10.30560/rfm.v6n1p71

Keywords: fixed income securities, credit risk management, existing problems, improvement measures

Abstract

Credit risk management of fixed-income securities, as an important component of the financial market, is closely related to market stability and investor rights and interests. In recent years, global economic fluctuations and shifts have become more pronounced, and credit risk events have occurred repeatedly, exposing many shortcomings and weaknesses in the current management system. Currently existing problems are with failure of independence of the rating system, failure of information disclosure mechanisms, risk pricing delayed rather than driven by fundamentals, and regulation does not keep pace with market innovation. These problems have complicated the risk transfer chain process and increased market fragility. The study, based on existing relevant theories and cases, proposes systematic reforms including setting multiple rating mechanisms, stronger information disclosure obligations, implementing dynamic pricing mechanism as well as a comprehensive regulatory framework. By optimizing the risk identification and mitigation paths, it can provide practical references for enhancing market pricing efficiency and safeguarding financial security, and help the long-term healthy development of the fixed income securities market.

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