Asset Securitization In The Credit Support Of Legal Issues

Asset-backed security (ABS) is a new financing technique. With its unique operating mechanism ABS has become a new favorite in the capital market around the world. It is noticeable that in Chinese capital market ABS has already been put into practice. Compared with traditional financial methods, one of innovations of ABS is credit creation, namely, ABS' issuer issues securities with the support of the specific asset and its cash flow, and in this way a specific asset credit is created in addition to the commercial credit. So ABS is the amalgamation of commercial credit and the specific asset credit. On account of these, the author is going to make analysis on "credit support" in ABS from the point of legal view, in order that the reader can understand the "credit support"——the lifeline of ABS, comprehensively and deeply. This thesis is trying to discuss how to promote the amalgamation between the ABS "credit support" and Chinese present legal system from a comparative law perspective, and suggests creating a better legal environment to make the full use of ABS as a new financial method. The thesis first makes a brief introduction about ABS' background and its tendency in China, then one of ABS' innovations the credit creation is emphasized, that is, ABS has created the specific asset credit other than the commercial credit of financing parties which is the precondition and basis of ABS. The first part introduces the ABS' history, conception and the course of operation in brief and then opens out ABS' legal essence, that is, the securitization of creditors' right; The second part is one of the emphases for this thesis, which spreads encircling the "credit support" including the specific asset credit and those contained in the Credit Enhancement Scheme; The third part is another emphasis, which starts with Chinese present legal system to make analyses on the legal environment in the face of "credit support" in ABS. Finally, on the basis of analyses above of the Chinese existing legal provisions and practices and drawing on the foreign successful experiences, the author makes suggestions on the special law to be enacted on ABS in China.