Credit Asset Securitization Selection Problem

As an important financial innovation in 1970s, credit asset securitization can reduce financing cost, improve bank's liquidity, raise capital adequacy rate, disperse risk and open up a new way for profit. However, all the benefits above brought by securitization to bank will take on great differences according to the different securitized assets. And as the initial part of whole procedure, choice on securitized asset not only influences the complexity of process directly, but also generates a decisive impact on the function of securitization. Taking securitization choice as a breakthrough, this paper studies how to make a good use of securitization by the choice of securitized asset. The main points of this dissertation are as follows:1. Bank's choice on credit asset securitization under the pressure of capital restraint.Credit asset securitization has the function of improving bank's capital adequacy, but the improving degree is limited. Compared with issuance of long-secondary bond or stock, the effect of securitization is much weaker than that of the former, which works by increasing bank's capital directly. When bank needs to raise its capital adequacy rate, considering financial cost and capacity of capital market, the best choice of bank is the issuance of long-secondary debt or stock, the following choice is fine loan-backed securitization, and non-performing asset securitization is the last choice. Bank should try its best to avoid non-performing mortgage-backed securitization.2. Bank's choice on credit asset securitization under the pressure of liquidity.Credit asset securitization has the function of improving bank's liquidity by changing its loan (especially the medium and long term loan) which lacks liquidity into cash. And its effect on liquidity improving is...