The Research On The Financing Mode Of Equity Asset Securitization Of The High-tech Industry

Asset securitization, as a financial innovation, firstly appeared in 1970 s in the United States of the housing mortgage market for the shortage of housing mortgage loans. Later, applied to the bank’s non-performing assets. In many studies of asset securitization, it is agreed that the financing way can improve the capital adequacy ratio of financial institutions, increase the liquidity of assets, reduce the cost of integrated financing, improve capital efficiency, and give full play to the financing role of high quality assets and increase investment type and so on.High technology enterprise is an important part of promoting economic growth.In the early stages of its development, the demand for funds is large, but its risk is high,income is not stable, intangible assets accounted for a large proportion, which don’t match with the lending requirements of traditional financing methods.Therefore, many high-tech enterprises are difficult to solve the financial difficulties through traditional financing methods, and thus affect the transformation of achievements.This paper based on the traditional mode of financing, analyzed and compared preferred stock,subordinated debt and convertible bonds between strict equity and bond, choosen preferred stock as a financing tool, then through the securitization to disperse risk and reduce the cost of financing.This paper is divided into four steps.The first step is to calculate the enterprises’ comprehensive score through factor analysis based on the Edward.Altman’s Z model,then select the "health" enterprises; The second step is to calculate the expected default rate based on KMV model; The third step is to make some limiting assumptions on the duration, dividend rate and other terms of the preferred stock and construct the virtual preferred stock pool;The fourth step is to divide the interest rate term structure, analyze the cash flow and design the securitization products. Thus, we completed the overall design of equity assets securitization process, such as the selection of the enterprise, the estimate of the expected default rate, the structure of the preferred stock, the cash flow analysis and the design securitization products and so on.