Mortgage-backed Securities Research

Mortgage-backed securities(MBS) is virtually a certain arrangement that provides the finance organs extending housing mortgage loan with a certain kind of financing system.As a significant innovation of the international finance field over the last two decades,MBS in China is a cut-in point of assets reorganization in banks.lt is in favor of the circulation of housing capital in China,relieving pressure on the domestic commercial banks in the risk of liquidity and the rate of capital sufficiency,and favor of deepening money market,promoting innovation in the field finance and improving "financial infrastructure". Therefore,to implement MBS is an irreversible trend.However.due to the economic environment in which the market is immature and the capital mortgage-backed securities are still in experimental period,the feasibility of MBS requires more serious consideration. Under the present conditions.the foundation of carrying out MBS in China is still quite frail and to bring MBS to practice in a large scale is beyond the means.Besides,although there is potential requirement for MBS,it is actually not obviously urgent.To enlarge the source of capital in fundamental market and to stir the need of housing are regarded as the reasons for adopting MBS.This paper is intened to comment on it and in the mean time to research into the marketing situation and the institutional situation by using the successful experiences of American and western countries for inference,so as to put forward the opinion that the main task of China's carrying out MBS is to create favorable marketing and institutional conditions for them and.To improve responding marketing system to foster the exterior environment for the implementation of MBS so as to enable the institutional law system,instead of the non-institutional administrative support,to ensure the success of carrying MBS into execution.