On Legal Issues Of Risk-remote Of Asset Backed Securitization

Securitization of assets (Asset Backed Securitization, ABS) is nearly thirty years ofworld financial developments in the field is the most rapidly and affect the largest financialinnovation since the birth of the U.S. capital markets since the late1960s, by virtue of itsassets in credit financing, swept the major countries of the world capital markets, structuredfinance, the advantages of off-balance sheet financing in a short time.Asset securitization as a financing method of financial innovation, the biggest feature isthat the direct and indirect financing to establish channels of communication and conversionand build mutual transformation of the financial system, banks and credit market mechanism.Improve the efficiency of the financial sector, promote the deepening of capital markets andmature, reduce financing costs and risks, and played a positive role. However, securitiesissued by asset securitization, has a relatively high security, default rates low, financialinnovation as a tool, but inevitably accompanied with a certain risk. Therefore, the effectiveoperation of the need for and sets strict risk to be protected against legal mechanisms. One ofits core content is as important financial instruments and asset securitization products offinancial innovation, risk isolation mechanism. The asset securitization success to achieve thedesired results, the key is to risk isolation mechanism to the success of the establishment andrunning. The article tries to two core issues-the "true sale" and the special purpose vehicleset up and run from a legal perspective of asset securitization risk isolation mechanism, thenput forward the problems and countermeasures of China’s current asset securitization riskisolation mechanisms exist.The article is divided into five parts:The first chapter is the introduction. The literature review from the research backgroundand significance of the research status and main content of the article’s innovative points.The second chapter isolation bankruptcy risk characteristics of asset securitization and riskisolation mechanism introduced to analyze the sources of risk to the risk of self-promoters,the risk of the SPV, the risk of. Describes the process of asset securitization, the main problem is the risk of isolation, the legal connotations of risk isolation mechanism, explained the coreissue of the risk of isolation mechanisms and their decisive role which the asset securitization,the purpose is to facilitate the discussion below..Chapter III discussed from the point of view of the construction of a special purposevehicle (SPV) and securitized assets risk isolation. First, the SPV constructor from the SPV’srole, in the form and set up three levels of analysis, and then explore the SPV bankruptcy riskisolation.The fourth chapter discusses the promoters specific legal issues in the real sales. Theanalysis of this part of the way from the transfer of assets leads to the key aspects of the "truesale" risk isolation mechanism, and further study of the "true sale" risk prevention.Chapter settled the legal issues in the domestic asset securitization risk isolationmechanisms and solutions recommended. The biggest obstacle facing the process of assetsecuritization, asset securitization requirements greater conflict with existing laws. Addition,although our legal documents issued guidance asset securitization operation, but because ofits approach is a pilot, a lower level of the law while there are many issues involved in assetsecuritization is not specified. This chapter combines practical solutions of the correspondingproblem.