Small and micro enterprise credit enhancement collective bonds mainly have the following advantages:
First, lower the conditions for issuing bonds. The issuer of credit enhancement collective bonds for small and micro enterprises is a collection of many small and micro enterprises, which can unite to reach a certain issuance scale, generate external economies of scale, relatively reduce the requirements for individual enterprises, and let more qualified small and micro enterprises participate in this financing method;
Second, reduce the cost of bond financing. Credit enhancement and collective bond issuance can improve the credit rating of small and micro enterprises and make bonds issued at higher prices;
Third, it reduces the default risk of bonds.
Credit enhancement collective bonds are equivalent to high-quality small and micro enterprise bonds packaged and sold, which reduces the default risk of credit enhancement collective bonds of small and micro enterprises as a whole.
Corporate bonds refer to enterprises in all industries, as long as they meet the conditions for issuing bonds.