Core Viewpoint - The case of Shanxi Construction Investment triggering the "accelerated maturity" clause for early bond repayment at face value rather than market value has harmed secondary market investors, reflecting a new trend of local government financing vehicles exploiting clause loopholes to reduce debt burdens under fiscal pressure [1] Group 1: Event Analysis - The event highlights the increasing risk of default due to continuous non-payment from local governments in PPP projects, revealing the heightened repayment risk under local fiscal constraints [1] - The design of accelerated maturity clauses in existing credit bonds shows multiple ambiguities, transforming from a protective tool for investors to a means of protection for issuers [1] Group 2: Investment Implications - Investors in local government bonds must assess the financial feasibility behind bond clauses, focusing on the real return rates of project-backed bonds and the sustainability of financial burdens for pure credit bonds [1] - Even without traditional defaults, investors in local government bonds face hidden risks of reduced returns, suggesting a cautious approach in the current market with a focus on 1-5 year credit bonds and opportunities in bonds with implied ratings of AA and above [1]
弘则固收叶青:加速到期条款存续个券筛查及风险防范
news flash·2025-04-29 23:23