Research on Credit Risk of Corporate Bond Based on Principal Component Analysis and Cluster Analysis

In this paper, through the collection of corporate bond market data to conduct empirical research, Constructing 12 Index Systems, Using the principal component analysis method to extract the five principal component indicators, On the basis of principal component analysis, two kinds of clustering analysis were used to classify the data into two categories, And finally draw the corresponding conclusion: The profitability and solvency of the industry is the key to distinguish the credit rating of the enterprise. It is the main factor to distinguish between the two types of corporate bonds and the focus of the investors' investment.