The Design And Study On Residential Mortgage Loans Securitization In China

Assets securitization is one of the most important financial innovation in the international finance field since 1970", and it is also one of the most rapidly growing derivative financial instruments. It becomes a conduit between capital providers and demanders through its ingenious financial structure design and contract arrangement, including the disintermediation in the financial market. Assets securitization is the market behavior of resource. Through assets securitization, funding costs have been reduced and financial ratios have been improved, and commercial banks have freed up their capitals and boosted their earnings, and investors have gained new more investment-grade instruments and portfolios. In China, with the development of residential finance and the reforms of the residential regulations, personal residential mortgage loans in the commercial banks increase dramatically. Although these loans own high quality and the low risks, they have the long-term repayments and low liquidity .In the commercial banks, the original capital is almost from the short-term debits, then the commercial banks must be in the statement of liquid crisis .On this point, residential loan mortgage securitization would be the necessary option.Under the guidance of theory of modern economic managements, this thesis discusses the origin and mechanism of assets securitization; reviews the systems and productions of assets securitization in the West Countries, discusses the feasibility of residential mortgage loan securitization in China. Then this thesis discusses the problems of risk managements in China. On the basis of above, this thesis brings forward some design principles of assets securitization in China, and designs a sensible structure and the operation process of the residential mortgage loan securitization. The style of SPY and the product of securitization are also proposed. The fact that in the start stage we have few regulations on assets securitization makes the surroundings' setting up and completing imperative, then a series of arrangements are taken to make the residential mortgage loan securitization carried smoothly.