The Study On Credit Card Assets-backed Securities In China

Credit card assets-backed securities were first issued in 1987 of America. From then on,it’s market expanded very quickly and now have already played a that important role in the securitization industry.By the means of securitization, the receivables can be taken off from the balance sheet which helps the banks to optimize capital structure, improve liquidity management and lower the financing cost.Since the credit card receivables are revolving debts and totally different from the traditional debts, the credit card assets-backed securities have some distinctions in deal structure, cash-flow management and so on. Considering the revolving structure, this essay will analysis the operation process of the credit card assets-backed securities in China by comparing the experiments of foreign countries.The essay will focus on the motivations, feasibility and the pricing theory of credit card securitization in China. Now the credit card market is in its best years. Not only the trade volume of the credit card has already reach the minimum line for securitization, but also the banks are keeping searching for a lower financing ways, which make securitization of credit card receivables possible in China. But at the same time, because of lacking experiments, there still exists some obstacles about the securitization. This essay will give some suggestions for the securitization from the design and legal aspects.