Research On US' Housing Mortgage-Backed Securitization

MBS is originated from the United States and got its rapid development in the following four decades. Discussion and research of MBS in China only started from the end of the 1990's. It was not until 2005, has CBC launched China's first MBS product. However, due to various causes, this product did not obtain complete success. The development of MBS in China still needs tough work and has a long way to go.This thesis firstly attempts to explain the theoretic system of ABS and MBS, and gives detailed introduction to the origination, development and current situation of MBS in the United States. Further, it generalizes the four factors that lead to the success of MBS in the United States and explores its negative effect to financial security through analysis of US subprime mortgage crisis. Through generalization and summary of the United States'MBS and, based on related theories, this thesis analyzes the necessity and possibility of carrying out MBS and puts forward suggestions to promote the development of MBS in China.The first part of this thesis presents the definition and theories of MBS. Firstly, it analyzes the connotation of Securitization. Securitization refers to the process to create a financial instrument, which could be used to combine various financial assets and to sell it to the investors. According to the variation of basic assets, Asset Securitization is classified as MBS and ABS. At present, judged by whether it is divorced from balance sheet, MBS is presented by two forms -- balance sheet related and balance sheet divorced. Secondly, the thesis explains the individual MBS participating subject. It as well, gives detailed introduction to the operating process of Securitization, which provides the readers a thorough understanding of Securitization. The second part of this thesis puts stress on the introduction of the situation of MBS in the United States. It explains the reasons of the origination and rapid development of MBS and its development process, as well as its present situation. It's origination and rapid development in the United States is vitally interrelated with the characteristics of United States'housing financial system and the changes of its financial market. It is the fruit of the United States'housing financial system. In order to solve the problem of monotonous source of funds and the ill-match of assets and liabilities, the American government constitutes a special agency to provide credit upgrading to MBS, so as to promote its development.The third part of this thesis presents the definition of subprime mortgages in light of the current US subprime mortgage crisis. It gives an elaborate analysis of the occurrence and development of the US subprime mortgage crisis in the United States and generalizes a conclusion of its occurrence: Weakening of the real estate market and raise of deposit rate; the disregard of loan risk control by housing financial agencies; the entering of high-risk securities into the market because of interests collision of rating agencies.The fourth part of this thesis proves the feasibility and possibility of introducing MBS in China in light of the current conditions. It finally generalizes the inspiration from the United States'MBS to China.