Asset Securitization And Its Application In The Real Estate Field

Asset securitization has developed nearly 40 years and become one of the most important financing tools in the capital markets. Asset securitization skills have been mature and well developed overseas and there is a lot of experience worthy learning. Since 2005, China has launched a pilot project in mortgage asset securitization in the bank and gained considerable experience. However, the work has stalled due to the subprime mortgage crisis. Moreover, the application of the asset securitization to other areas is almost a blank in China.With the rapid development of real estate in China, real estate industry has become a pillar industry and played an important role in the national economy. The real estate industry in China has strong reliance on bank credit and almost the only financing channel which may cause serious risk on the financial system. Under the situation of real estate bubble and excess liquidity, the urgent need to innovate financing product and ease the financial pressure on bank credit should be considered. Fortunately, asset securitization can solve these problems we are facing.This paper studies the asset securitization and its application in the real estate field. From the basic theories of asset securitization, such as cash flow analysis , bankruptcy remote principles, credit enhancement , the author compares the development of oversea asset securitization experience, summarizes China's current development of asset securitization and regulatory monitoring situation, analyzes the feasibility and necessity of application in the real estate field and then describes three forms in details . Meanwhile, the author analyzes the special risks under the situation of real estate bubble and excess liquidity. The application of asset securitization to real estate field will not only enrich the source of financing for real estate enterprises in China, but also ease the pressure on bank loans for China's real estate market, which will promote the healthy and stable development of Chinese real estate industry and financial markets.