Asset Securitization: Elementary Theory And Analysis Of Its Risk

As an important financial innovation achievement, asset securitization has obtained widespread application in the developed market-directed economies, but as far as China is concerned, it is a new thing in the main. Regarding the merit of asset securitization, we have already achieved the mutual recognition no matter in theory or in practice. But the domestic research on the risk of asset securitization is limited to the micro aspect. The risk on the macro level, which can bring adverse effect to the whole financial market and national economy, is more or less neglected. So this paper attempts to research the risk of asset securitization from the macro perspective and proposes the corresponding management.In the whole, this paper applies the research method of combining epagoge and syllogism, micro analysis and macro analysis. While in the concrete chapters, this paper uses the research method of case study and empirical econometric analysis. Based on not only the brief introduction and summarization of the elementary theory of asset securitization and its domestic and foreign development but also the lesson of "subprime mortgage crisis", this paper mainly analyses the macro risk of asset securitization. The conclusions are as follows: (1) Asset securitization may encourage the real estate bubble; (2) Asset securitization may intensify the information asymmetry of financial market; (3) Asset securitization may reduce the efficiency of supervision on financial industry. This paper believes the key of the macro risk management of asset securitization lies in the realization of effective supervision on financial industry, including the origination of home mortgage loan, the risk management ability of originator and investor of asset securitization, the credit rating organization and the reformation of the supervision system if necessary.