Design And Pricing Analysis Of Small Loan's Asset Securitization

Financing difficulties of small and medium sized enterprises is a crucial problem which is closely related to the healthy development of country's economy.The expansion of small loans companies plays an important role in relieving small and medium sized enterprises' financing difficulties.However,small loans companies don't have enough loanable funds because of the legal provisons on the source of funds.The securitization of small loans is helpful to liquidize credit assets and add more loanable funds.In July 2013,the first securitization product of small loans was issued.Until now,our country's securitization of small loans is still in the initial stage.As a result,the number of small loans securitization products is very small,and the studies on small loans' securitization mostly concentrate on single case—Ali small loan.In other words,the research achievement of exsiting studies,containing design proposals,product structure and improving advices,were limited to single case.So,these advices can 't be accurate for all small loan companys,especially those offline ones.Therefore,basing on several different small loans securitization products,this paper will make well-informed comparative analysis,such as qualification standard of basic assets,credit enhancement ways,structured design,risk management measures,cash flow distribution order and so on.Corresponding to different product design,this paper will also analyze different investors' actual earnings under extreme conditions to provide reference for the following securitization.Besides,from the perspective of risk and benefit,basing the “credit spread”theory,this paper will take AAA bonds for example,calculate “yield to maturity”,“credit spread” and “default probability”,compare “credit spread” with “default probability” and analyse the risk and benefit.Then,offer a new idea about the future pricing of small loan's securitization.