Risk Identification Of Asset-backed Securities In China

Asset securitization originally was born in the United States, and there has been a history of nearly half a century. It has also been developed ten years since our country carries out the pilot of asset securitization from 2005 to now. In the year of 2014, with the explosive growth of new issue size of the asset-backed securities, new issue size of this year only has exceed the sum of the past nine years. With the rapid development of the business, risks hidden in the asset-backed securities are gradually prominent. Mortgage-backed securities as the longest average duration, the largest average size of asset-backed securities, the risk identification is one of the very important topic in the field of asset securitization. This paper takes the "Youyuan 2014 " as an example to study the risk identification of asset-backed securities.In using the theory of asset securitization, the way of risk identification and on the basis of research results from domestic and foreign scholars on asset securitization, this paper analyzes the risks of "Youyuan 2014" in the method of flow chart and points out the different risks of "Youyuan 2014" at different stages in the process from design to circulation, such as credit risk, liquidity risk, etc. Then, the paper studies the relative importance of five kinds of risks in the way of Analytical Hierarchy Process. At the end of the paper, it summarizes the problems and opportunities of asset securitization in our country, and a series of suggestions were put forward to strive to play a positive role in the healthy development of asset securitization in our country.