The Research On Mortgage-backed Securitization In China

In 1998, china had implemented the housing reform and had canceled the allocation of housing and the system of the housing mortgage loans replaced the system of the housing allocation .Then the housing mortgage loans has developed. With the improving of the living standard ,people have increased the demands of housing. However the cost of buying house is large and it has been the moral part of the living. Many people can't pay to buy a house, therefore, they choose to go to bank and have a mortgage loans. With the increasing of the housing mortgage loans, Mortgage-backed securitization appears.Mortgage-backed securitization has many characteristics such as Improving the liquidity of bank, transferring the risk and keeping the stability of bank. The developing of mortgage-backed securitization has positive effect on our economy .However ,the market of mortgage-backed securitization is not perfect. We need to improve in many respects. We should analyze the problem and solve it .The article has included six chapters:Chapter1 is about the background of research,the signification of research and the summarized description of the domestic and foreign research situation .Chapter2 is about the Introduction of Mortgage-backed securitization. It introduces the basic connotation, operation, and three basic principles of mortgage-backed securitization;Chapter3 is about the development of mortgage-baked securitization of china and the problem of the mortgage-backed securitization. It mainly introduces the development of the present situation and the problems of Mortgage-backed securitization in China. We know the building process of the mortgage-backed securitization, but it also exposes many shortcomings, Chapter4 is about the principle of mortgage-backed securitization. This part is the core of the article, it mainly introduces three types of pricing and the method monte carlo meets our basic condition .Chapter5 is about the price of mortgage-baked securitization .Chapter 5 is about the management of the risk. this part analysis interest-rate risks, the default risk in the process and have the corresponding countermeasures to prevent the risks .