Application Research On ABS Of Fund Loan

Housing provident fund system is an important social housing security system in China, which aims to improve housing needs of residents. Provident funds of various regions are mainly collected from provident fund deposits paid by employees and their companies. With the increasingly high demand of housing, problems, such like high individual fund loan rate and liquidity shortage emerged in some regions, which would restrict the issuance of loans and the functions of housing security system functions. Thus it is imperative that the Fund centers should expand the financing channels to prevent the deterioration of these problems.Taking Shanghai individual housing loan securitization financing as an example, this research tend to draw the lesson and make reasonable recommendations on the deficiencies of the case, to provide experiences to subsequent asset securitization of fund loans. Firstly, the innovation of this essay is that the housing provident fund loans, as underlying assets whose weighted average interest rate is less than the expected rate of return of securities, triggered interest rate inversion. Moreover,high geographical concentration has its own characteristics. Therefore more specific transaction structure and credit rating enhancement measures have been designed to prevent risk.Besides, after taking Shanghai fund asset securitizationfor exampleand analyzingthe key elements of the underlying assets, credit enhancement and risk isolation, this essay summarized the successful experiences of cases and pointed out that these cases have some promotional basisfrom the supply and demand perspective. Finally, suggestions have been made for the deficiencies of cases, in order to better promote the development of asset securitizationfund.