Abstract:To explore the exercise logic and influence path of the bonds including coupon rate adjustment right and resale right under different financing environments, and to excavate and confirm the value of the possible default risk information of issuers in the process of both exercises, the credit bond sample from 2014—2021 was selected for empirical analysis. The findings are as follows: firstly, when the financing environment changes from tightening to loosening, the more the bond issuer prefers to adjust downward, and bonds with higher credit ratings have larger coupon rate adjustments than bonds with lower credit ratings. Secondly, when exercising the coupon rate adjustment right, the greater the excess spread after the bond issuer adjusts the bond coupon rate, the less the investors will exercise the right to sell back. Finally, the bonds that still choose to adjust the coupon rate upward in loose financing environment are more likely to default, which confirms the default warning value of the exercise. The conclusions will provide reference for bond issuers, investors and regulators in their decision-making.