| Structured financial product in China’s financial market is one of the more rapid development branch varieties. Its advanced modern design concept and the higher expected rate of return makes structured financial products become the darling of the market. In 2013, China’s domestic structured finance issue number year on year growth reached 31% of the product is high, but the hot issue market does not cover the risk characteristics of its high-risk, opened in 2013 to the end of August 2013, a total of 938 models of structured financial products expire,348 models product disclosure, which has 73 models of structured products are not expected to reach the highest yield, accounting for 21% of the whole. High risk conflict with the larger issue of fiery between spawned a structured finance Measurement of the necessity of product risk.Based on the analysis of structured financial products of three different sources of risk, the paper utilized three different types of three different models of risk measurement, GARCH model for market risk, interest rate term structure for liquidity risk, measurement based on KMV model for credit risk. And the paper use of standard scores after treatment and the weighted average of the treatment, so the three types of risk were integrated. Then we get an effective way to analysis of the risk of financial products. In this paper, we choose the most unideal structured financial products disclosed in August 2013-"Performance Linkage (Euro bearish) financial planning focus of the exchange rate linkage series" for the empirical analysis, and has got an ideal result. |
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