The Research On Mortgage-Backed Securitization

With the rapid progress of housing system reform, need for personal housing mortgage-backed loan grows rapidly. The proportion of personal housing mortgage-backed loan in the loan as a whole goes correspondingly up. The contradiction from short-time liabilities to long-term assets is becoming serious gradually and the capital gap is becoming greater. The assets'floating pressure to the commerce bank is getting more serious. So it is an urgent problem that is need to be solved how to get rid of floating difficulty and avoid financial risk. Mortgage-backed Securities (MBS), which originated and prospered in American in 1970's, is an effective method to solve the problem. In the past 30 years, every country in the world has been paying attention to MBS. It's also of momentous current significance to our country. There is no doubt that how to learn and use the financial innovations is an important task, to which the theoretician and the practitioner should devote their energies.On 15th, Dec 2005, China Construction Bank entrust Zhong Xin Entrust Company to issue"Jian Yuan 2005-1"MBS. The successful issue of"Jian Yuan 2005-1"MBS is a token that the securitization study is changing from theory to practice. MBS has advantage over cultivating financial organization, reducing financial risk and perfecting capital market. The successful issue of"Jian Yuan 2005-1"MBS also shows that MBS has been initiated from experimental unit to a further goal of large scale implementation.In order to find and solve problems existed in MBS process, the author tries to summarize and analyze the implementation of MBS in China from a perspective of a balance between theory and practice. The thesis first introduces the related theory of AS and MBS. Then combining the theory with the"Jian Yuan"practice, systematically analyzes the present implementation (the transaction entity, the asset pool, the credit rating, the credit enhancement ) .on the basis of close theoretical analysis and the practice of"Jian Yuan", the author finds out existing problems and present suggestion to solve problems.