A Study On Securitization Of China 's Lease Assets And Its Pricing

In economically developed countries like Europe and the United States, the investment permeability of finance lease is 15%-30% on average. Among this, it can reach 30% in some European countries and it maintains more than 20% in the United State for many years. As the second largest financing way of developed countries, finance lease links the financial industry to the real economy. Recently finance lease has developed rapidly in China, however, a big gap still exits due to less than 5% market permeability of finance lease compared with the development level of developed countries, which cannot meet the requirement of the real economy in China. Finance lease mainly services for small and medium-sized enterprises, which is important to solve finance problems of these enterprises. At present, business capital mainly stems from bank credit without adaption to the rapid development of finance lease, which is the main reason for hindering the development of finance lease. As a capital-intensive industry, the finance release is greatly limited by the single financing channel and high financing cost.Asset securitization gradually rises to make the direct financing in the capital market, as a new financing way. It reorganizes the lack-liquid capital with a predictable and stable cash flow, and issue securities for financing in the capital market. Financing lease companies have natural advantages to combine with the asset securitization because they have a large number of receivables and a stable cash flow. The release of securitization products provides a new channel to solve financial difficulties of finance lease.Related literatures about the finance lease asset are not much in the field of asset securitization. First, this paper discusses the theory foundation of finance lease and its securitization, and illustrates the reference significance of foreign asset securitization, and analyzes the status quo and significance of leasing asset securitization in China; next, it studies the particularity of finance lease asset and key problems faced by securitization, and analyzes basic characteristics and operation mode of over-the-counter products of leasing asset securitization; then, it focus on researching product’s pricing of the leasing asset securitization, which is the core problem directly affecting the issuance and circulation of asset-backed security. This paper analyses factors influencing the pricing of leasing asset securitization from the market environment and the underlying asset. Option-Adjusted Spread (OAS) is deemed to the best pricing method suitable for Chinese situations for the moment by combing and analyzing the pricing model, but many problems need to be solved using the model. Finally, the paper makes an empirical analysis on the pricing of leasing asset-backed special plan. Some suggestions are carried out to provide practical guidance for leasing asset securitization.