Research On Risk Management Of Securitization

Securitization has become a popular financing method for the capability of improving capital structure, liquidity and dispersing risks. In 2005, securitization was officially put into practice in our country for the first time. However, operating and running securitization is facing high risks for the lack of related laws and regulations, undeveloped capital market and unqualified agencies.This paper starts with a thorough investigation on securitization risks according to the connotation, denotation, primary factors and ultimate outcomes. In the following parts, key risk factors are identified by dynamic sequence analysis through the entire securitization phase. Besides, it puts forward a securitization risk analysis model and calculating algorithm employing Fuzzy Mathematics. Based on the three-phase risk evaluation results, it brings forward 9 categories of securitization risk management tactics and their applicability. Afterwards, it proves the main theory, model and arithmetic raised in this paper through a practical study of Yuexiu REITs. In the end, it proposes advices for promoting China's securitization market.