Feasibility Analysis Of China’s Mortgage-Backed Securitization Under The New Situation

As the one of the most important financial innovation in20th century, asset securitization made financial assets have higher liquidity, it dispersed risk of assets, while expanding the financing function of financial markets and improving the efficiency of financial markets.Mortgage-backed security is an asset-backed security.Investors holding these bonds can get cash flow income from mortgage loan pools consisting of assets. The second chapter introduces the theory of asset securitization, mortgage-backed securitization. First points out the benefits of asset securitization, focusing describe the housing mortgage loan securitization’s concepts, classification, development process. The close relationship of housing mortgage loan securitization and the subprime crisis has laid a foundation for a clear understanding of the formation of the U.S.subprime crisis. System to understand a range of issues of securitization of housing mortgage loans in china’s development is helpful. This part is the theoretical basis.About the causes of the subprime crisis, many scholars have analyzed and studied, but its research on the development of China’s housing mortgage securitization also revealed significantly less. The third chapter describes the U.S. development of housing mortgage loan securitization, thus explain the origination and evolution of the U.S. subprime crisis. Then analyze the causes of the U.S. subprime mortgage crisis.Development of China’s securities market is still in the preliminary stages of development, while the U.S. housing mortgage loan securitization is relatively mature development. So in particular, and China is now the stage during similar bonds from the U.S. history, careful combing its capital securitization process, and strive to make the experience of U.S. residential mortgage loan securitization have a good impact on the China’s development. My thesis will be more starting from the basic principles of economics, by analyzing the demand side and the supply side of MBS, so that our residential mortgage loan securitization has a factual basis to deepen. The fourth chapter analyzes the current development of mortgage securitization in China, description of the necessity and feasibility of mortgage-backed securities, while China’s housing mortgage loan securitization faces many problems.The fifth chapter proposes a solution of undertaking mortgage securitization. China should deeply understand the difference between China’s financial system and other countries’,in the foreground does not cause major economic upheaval release mortgage loan securitization market.