Assets-Backed Securitization And Its Application In Infrastructure Project

Assets-backed securitization, as an innovation mode of financing, has had very fast development in recent years, which has been one of the most important financing improvements and financing products in the international financing market in the latest thirty years. However, because the practical problem has related to economy, law, accounting and taxation, the perfect tool can not be promoted cosmically in China.With entering the period of 21st century, the infrastructure construction goes to a peak. At the present time, the financial resources of government are limited, and there are some limitations in the existing way of financing. So it is significant for us to explore the way we utilize ABS in infrastructure financing. We put forward the new concept of ABS in the infrastructure financing, and make specific use of the ABS technology in infrastructure construction for financing, which could propose some suggestions for resolving the fundamental bottleneck problem which has restrict the development of the economy in our country, which has the important function and meaning to our national economy.This paper discusses the preliminary theory of the assets-backed securitization mode, considers the major characteristics of the infrastructure financing field in our country, analyses the feasibility and the necessity of applying the ABS to the infrastructure field. Moreover, through the special elaborations on the bankruptcy isolation, credit enhancement, risks, taxation and accounting, this paper provides an innovation model of ABS in infrastructure financing in our country.