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Securitization Of Credit Assets And Explore

Posted on:2005-10-19Degree:MasterType:Thesis
Country:ChinaCandidate:M ShenFull Text:PDF
GTID:2206360122480636Subject:Finance
Abstract/Summary:PDF Full Text Request
In recent thirty years,credit asset securitization has turned to be one of the greatest financial creations. It gathers the credit asset which is lack of validity but with cash in-flow in the future in the light of some characteristics, simultaneously regroups its benefit and risk through some available technologies, and then turns the group into some securities which can be sold or circulate in the financial market. According to the international operation experiences, credit asset securitization can lower the risks effectively, allocate the resources and risks optimally, and it can improve the development of banks, capital market and national economy and especially promote the growing of banking system and financial market.With China's entry into WTO, the open trend of capital account appeals, and at the same time, the national treatment of financial services industry will come soon. The banking of China is faced with a great challenge under these circumstances. Therefore, during the building of our country's own credit asset securitization pattern, it is necessary to take advantage of securitization to trigger the energy of China's banking. On the basis of analyzing the definition and theory of credit asset securitization, this thesis analyzes the causes, effectiveness and risk of securitization from the view of return-cost analysis, and discusses the role of securitization and its significance. Moreover, this thesis indicates the inevitability of usage of credit asset securitization in China. By stating the research and history about securitization, this thesis stresses the start point of credit asset securitization research in China and the choice of mode.There are five chapters in this thesis, which are arranged as below: The first chapter states the fundamental of credit asset securitization. At first, this chapter researches the correct method to define the credit asset securitization. All the aspects of securitization evolves constantly, therefore, when defining, credit asset securitization, the changes should be taken into consideration. Secondly, this chapter analyzes the participators of credit asset securitization and its basic operating procedures with the usage of diagrams presentation. In the last part of this chapter, the retrospection of the development of many countries' securitization has been gathered, which includes that of USA, Europe, some Asian countries and China, in order to indicate the inevitability of development of Credit asset securitization in China.Compared with traditional financing method, the credit basis of credit asset securitization is the future revenue and it focuses on whether the securities as special capital pool can bring stable cash flow. Therefore, some certain technologies and theories are needed to smooth the implementation of securitization. The second chapter discusses the above content. The analysis about the theories of credit asset securitization is carried out from three different aspects. Firstly, the law of large numbers is the statistic basis of securitization, because it makes securitization possible. Secondly, securitization is a course of issuing securities with the support from the predictable cash flow of credit asset portfolio and the predictable cash flow is the precondition for securitization. Therefore, the cash flow analysis for fundamental asset becomes the core theory of credit asset securitization. Thirdly, this chapter goes further to study the cash flow of fundamental asset. Additionally, there are another three basic principles, including principle of asset portfolio, risk segregation principle and principle of increasing credit rank. During the development of securitization, these three principles become more and more fundamental and important.Basic summary and analysis of credit asset securitization both account for that the key point of securitization is the reorganization of asset's return and risk to achieve optimal allocation. Therefore, to analyze the issue of credit asset securitization fr...
Keywords/Search Tags:credit asset securitization, asset-backed security, home mortgage loan, infrastructure facility loan, non-performing asset
PDF Full Text Request
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