Research On Green Credit Asset Securitization

The 2023 government work report pointed out that more efforts should be made to promote high-quality development,and the important role of green finance in supporting domestic demand should be highlighted.Green credit securitisation are an important part of green finance and can meet the financing needs of auto finance companies.Our country’s leading auto finance company launched the first single Double Green products,Rongtengtongyuan 2022 the first phase of auto loan Securitisation products.Its issue offers the case for green credit securitisation and enrichs experience for other auto finance companies launching similar products.This article mainly uses the case analysis method,the inductive analysis method,the literature research method to carry on this case analysis from six chapters.Based on a review of the relevant literature and the green credit securitisation market,it is found that the green credit securitisation market has developed in recent years,but which is relatively slow.It is characterized by insufficient market liquidity,single asset type and single issuing entity.Green asset-backed securities of personal auto mortgage loan are suitable for auto financing companies to issue them as a financing method because the underlying assets are relatively dispersed and secure,the mortgage guarantee is relatively effective,and the maturity time of the underlying asset pool is short,etc.This paper introduces the case of Rongtengtongyuan 2022,and analyzes its credit enhancement,cash flow and income distribution,risk status of asset pool,relevant preventive measures and issuance benefits.Based on this,this paper concludes that the product has the advantages of high-quality pool-based assets,strong credit support and reasonable issuance plan.However,at the same time,it also has the shortcomings of small issuing scale and insufficient external credit enhancement mechanism.Based on the above work,this paper believes that the auto finance company should improve the green credit business management,strengthen the pool assets screening,strengthen product diversification and innovation,and introduce external upgrading methods.In addition,relevant regulatory agencies should reduce or exempt the risk of green credit ABS retained,set up a market-maker system of green credit ABS.