The Study Of Mortgage Baked Securitization

After the reformation of our housing system, housing mortgage market boomed, the demand for housing loans increased, which have brought tremendous challenges to the banks. Referring to foreign experience, it is a very good way to use Mortgage Baked Securitization (MBS) to solve the source of housing loans. Asset Baked Securitization (ABS) is one of the most important financial innovations in recent years. From the late 1960s, the market of ABS has become the widespread financing way in developed countries. And MBS is an important one of ABS. Furthermore, on December 15, 2005, the first MBS product of the China Construction Bank coming to market, which will further accelerate the step of our MBS and studying of ABS.The paper is divided into seven chapters, the main chapters are from chapter 2 to chapter 6, which respectively studies the basic theory, the main products and risks of MBS.Chapter 1 is the introduction. Combining with the condition of our current housing market I first presented the main problem of the paper. Then this part simply reviews the research of our country and emphasized the main point and structure of the paper.Chapter 2 is the content and operation mechanisms of MBS. As MBS is included in ABS, the first section of this chapter first introduced the definition, the essence and basic flow of ABS. On this basis, section 2 specific ally introduced the content, basic principles and characteristics of MBS.Chapter 3 is the feasibility analysis of our MBS. By the study of the supply, demand and the legal environment, and so on of our MBS, we know that we can carry out our experimental unit of MBS.Chapter 4 is the product introduction of MBS. In this chapter, I introduce three products of MBS: pass-through securities, collateralized mortgage obligations, P/O and I/O in detail. What's more, I compare the three products. In the end, I introduce the product of China Construction Bank.Chapter 5 is the risk analysis and risk control of MBS. In many risks, this chapter studies three risks: section 1 mainly studies prepayment risk, including the factors affecting prepayment and forecasting models; section 2 mainly studies financial risks, including interest rate risk, inflation risk and currency risks, etc; section 3 mainly studies credit risk, including the characteristics of credit risk, and so on.Chapter 6 is the implementation of our MBS. Section 1 stresses the first product that China Construction Bank issued of MBS last year; section 2 analyzes the risk of various stages, and makes some specific recommendations; in the basis of section 2, I make a number of recommendations to further our MBS.Chapter 7 is the summarization and prospects. In this chapter, I get out the conclusions of the paper and point out the direction for future research.