Abstract: The restriction of default credit bond trading makes investors lack of market-oriented exit means and easy to accumulate market risk.China has the basic conditions to form the default credit bond market. Compared with the “fallen angel” yield curve of American high-yield bond of similar nature, China′s default credit bond has investment value. The default credit bond market is of great significance for resolving the default risk of bond market, building multi-level bond market and bond market internationalization.The construction of the market needs to follow the concept of legalization, marketization, safety and benefit balance. We should build a unified cross market default credit bond trading market, and formulate targeted trading mode, access threshold for qualified investors, information disclosure system and corresponding supporting systems based on the characteristics of default credit bond.

Key words: default credit bond market, concept, targeted system