Research On Pricing Methods Of Automobile Finance Asset-backed Securities

Asset-backed Securities (ABS) is the product of international financial innovation and one of the important tools to enhance the liquidity of banks assets of China and decrease finance risks. Automobile Finance, the support power and important part of auto industry, has great significance for the automobile industry and economy of a country. Based on introduction to the developing tendency of Asset-Backed Securitization and Automobile Finance, the article systematically analyses the demonds of Automobile Finance ABS and difficulties of its development in our country and put emphasis on analyzing the structure, process, cash flow, discount rate and influence elements of Automobile Finance ABS price.Based on these, some assumes and NPV, a normal model for Automobile Finance ABS pricing is made. Considered the influences of prepayment and breach risk, the article makes the model of the cash flow forecasting for Automobile Finance ABS. After the comparsion of Market Pricing Method, CAPM Model and Option Pricing Model, a discount rate model which is suited to the current situation of China, is maded. At last, the complete model for Automobile Finance ABS pricing is proposed.There are some discussions of problems in this model, and pricing of other structures and types Automobile Finance ABS.The paper is aimed to provide useful reference for the development of Automobile Finance ABS in our country in future.