Research On Risk Prevention Of Mortgage-backed Securitization Based On Financial Crisis In China

Mortgage-backed securitization (MBS) is the most significant financial innovation in the international finance areas since the 20th century 70's, playing significant functions in developing real estate industry, decentralizing financial risks and improving the role of financial markets.However, financial innovation will inevitably be accompanied by financial risk. Mortgage-backed securities are complex financial products, with a high degree of professionalism and technical performance. MBS involves a number of trading participants, the specific transactions are extremely complex, and every element of MBS faces risks. In this study, taking MBS risks as research subjects, starting at basic theory of MBS, and combining with the newest background information---the financial crisis, the facing risks of MBS and preventive measures were analyzed as Jianyuan securities an example in our country.MBS played an important role in the financial crisis of the United States, which contributed to the real estate bubble and increased information asymmetry in financial markets, functioning as booster and amplifier in the crisis. Financial crisis in the United States has provided valuable lessons in preventing the MBS risks in our country, making the fully understanding that the effective risks prevention to MBS is the key to the success.MBS in China has just entered the pilot; its development of next stages as well as various related issues needs further discussions and researches. This study took the opened MBS pilot project-Jianyuan securities as an example, analyzing problems of the pilot project, small see larger, to propose variety of risk factors in the process of carrying out MBS in our country. According to the sources of risks, the risks would be divided into three aspects:First, mortgage market risk, which is the source of MBS; Second, securitization risk, this type of risk comes from securities own operations, can be avoided, including prepayment risk, credit risk, interest rate risk, etc.; Third, system risk, this type of risk comes from the change of support conditions of securitization, can be lowed but not avoided, including:legal risk, accounting and tax system risk and intermediaries risk. Finally, according to the real conditions of Jianyuan securities, the measures of how to carefully develop MBS were proposed on the basis of summing up the lessons of the financial crisis in our country. Taking lessons from the financial crisis, launch of mortgage-backed securities in China must be careful and should not be blindly aggressive. At present and in the future, the key focus of the development of MBS is to create conditions for implementation, to build a solid foundation and promote development of MBS healthily and steadily.