The Research On Asset Backed Securitization Of Credit Enhancement Systems

Asset backed securitization is a new financing tool in the last century which first sarted in America.Because of the wide range of financing,securitization has achieved a great development in the world.However asset backed securitization is still at the initial stage in our country and the development is not mature. Asset backed securitization as a new financing tool,its complex transaction contains a high credit risk.In order to promote the securitization products successfully issued and attract investors to invest,almost all of the asset backed securitization will inprove the level of credit by taking meatures in credit rating.There are two ways to improve the credit level in the process of asset backed securitization:internal credit enhancement and external credit enhancement.The promoters will select different assets credit enhancement according to different charateristics and market demands. The asset backed securitization’s credit in our country is not such ideal,one reason is the defects exist in credit system itself,the other is because the securitization market is not mature.At the same time, the adverse fators in credit environment and legal environment become the biggest obstacle in asset backed securitization.This article tries to improve the credit hancement’s own defects, choose credit enhancement from different angles,reform the system of credit rating,perfect the credit market and legel environment to improve the system of credit enhancement in process of asset backed securitization.In this way,we can construct a healthy financial market and maintain the financial order.