The Research On The Transferring Vehicle Of Prior Beneficiary's Right Under A Floating Rate Enterprise Bond Trust

The floating rate bond, as the main enterprise bond recently issued, is popular among the investment organizations. However, because of its long period, large amount of investment, it exhibits some obstacles for individual investor to purchase this kind of bond. By introducing the transferring vehicle model of prior beneficiary's right, this project maintains that the long-term floating rate bond can be divided into several trust vehicles of one-year term, which will be more suitable to individual investor's purchase.First of all, by introducing the present situation in our country enterprise bond market, this article discusses the problem on how it is hard for individual investors to invest the floating rate bonds and explains how to design the product to suit individual investors'purchase.Secondly, this article proposes the principles on product design and gives the introduction to the asset securitization and our country present situation. Then it discusses the present situation under which the trust companies utilize the principles of asset securitization in the business of prior beneficiary's right transfer under property trust, illustrating the systematic structure of the operation and the main problems of this vehicle, and listing the main efforts must be implemented in order to improve this vehicle.Thirdly, this article make a comprehensive analysis to the design of the vehicle and core elements of product, trust beneficiary's right, the procedures of operating, characteristics of product, main participants, credit-strengthening, the management of trust, disclosure of information, the legal matter, accountant and tax revenue and presents the market prospect of this vehicle.