The Process Of Mortgage-backed Securities Risk Control

Securitization is the subject which is discussed in recent years, and it is debated more thoroughly in academic research, specially after China Construction Bank issues of bonds for housing mortgage loan securitization.It is significative for economic development of China to apply the innovative financial instrument. At the same time, the risk will happen gonging with the fianical innovation. So,the study on risk in recent and future time become to an important problem. This article puts forward my view on risks of securitization.Based on the basic theory of securitization and the sturcture of CCB' s scuritization, the article compares the structure between the two securitization, and derivates the possibility of risk.Then, it concretely analyses risks in each step of the process of securitization, and gives some strategy how to settle the risks; after the analysis on process risk, it classifies following risk in the future of securitization, and also gives methods to settle the risks; next, aiming at the default risk of securitization, the paper predigests the structure of securitization, and puts forward a point that measures the default risk by the models measure default-risk swap after comparing the structure of interest rate swap with predidested structure of securitization. In general times, with analysing and classifing the whole risks of securitization, the article gives corresponding methods which may keep each risk away, and summmarizes the models that can measure default risks.