Research On Risk Management Of Credit Asset Securitization

Asset Securitization in china has breaking the ice just now. As the environment's difference between market, system and so on, every country faces to the different problem during securitization. We can not copy abroad experience completely. Pricing and risk manage are two key factors, which lead asset securitization to success or failure. Thus, this paper mainly studies the securitied risk and the measure of risk management in credit asset securitization whit the theory of asset securitization, risk management and finance, also the research method of qualitative and qualitative analysis. The purpose is preventing risk loss's happening or decreasing risk loss by the securitied risk's distinguishing, measuring and handling. Through the analysis of securitization's three core technology, including assets pools' instauration, true sale and bankruptcy remote, credit enhancement, the article indicates the potential risk of them and the way of risk management. The main body of this paper has studied the adverse selection and moral hazard which is due to the originator's incentive problem, also it has summed up the way of judging adverse selection and the measure of reducing moral hazard by combining the cases in existence in our country. The paper has carried out contrast studies to prepayment's generate mechanism between fixed interest rate and adjustable interest rate, also it has showed some ideas of risk management to prepayment through the system and the technology.