The Risk Management Of The Mortgage-Backed Securitization In China

Mortgage-Backed Securitization originated on American soil, it is one of thegreatest financial innovations in the20th century. In recent years, it has a vigorousdevelopment in Europe and America, Latin America and Asia and other countries. In1996, the first personal housing mortgage loan come into China. After several years,housing mortgage loan stock put on sale in2005, Mortgage-Backed Securitization inChina entered into a rapid development period. However, the global SubprimeLending Crisis has Mortgage-Backed Securitization in China a high alarm, we cometo realize each link implementation in Mortgage-Backed Securitization would haverisk, Only if we assess the risks effectively and combined with the situation of Chinagives out some corresponding countermeasures, Mortgage-Backed Securitization inour country will has a healthy development.The paper has discussed the relevant theories of Mortgage-Backed Securitizationat the beginning, then make a deep research and analysis at the basis of thedevelopment of Mortgage-Backed Securitization in China and the currentsituation.By learning from the global Subprime Lending Crisis teaching, we drawfrom the importance of risk management. Choose one of the most important three risknamely acceleration risk, credit risk and interest rate risk as the research object, fromthe related concept, the situation in China, influence factor, measurement method andso on, carry on the theoretical research and empirical research, choose "jianyuan2005-1personal housing mortgage backed securities" as the research object, usingMulti-factor regression model and CPV model make an empirical analysis onacceleration risk and credit risk respectively, According to the above study putsforward the opinions and suggestions about Mortgage-Backed Securitization in China, so asto put comprehensive risk management into effect, make the overall level of risk to aminimum.