The Design Of Collateralized Bond Obligation Based On The Combination Of Internal And External

The credit enhancement of small and medium enterprises(SME)is an important part of bond issuance,investors also concern about it.The development of SME collective bonds is slow in China.There are some problems about credit enhancement,such as the level of single and too much dependence on external security.These problems hinder the long-term development of SME debt collection.In this paper,we puts forward the method of increasing the level of internal and external guarantee based on the combination of internal and external level.This paper summarizes the situation of the 27 small and medium sized enterprises from the year 2007 to 2016,and analyzes the current situation and existing problems,On this basis,the author puts forward the model of internal layer in joint the external guarantee.Specifically as follows: In order to enhance the internal level,the paper adopts three levels,which are divided into priority layer,middle layer and secondary layer;According to the characteristics of the various levels of risk income,the proportion of each level and investors have made different arrangements;Priority layer of the first part of the compensation,which bear the minimum risk,from this ways,the investor’s profits can be better protected.They account for about 70 percent.Intermediate part of the proceeds and risks are centered,which can be hold by intermediaries.They have a lot of internal information,the issuer’s operations and solvency are relatively well understood,and they also own the ability and energy to monitor the issuer.Therefore,if they hold this part,it can solve the problem of asymmetric information.They account for about 20 percent.The second tier is suitable for investors with strong risk tolerance,such as SPC or some large financial institutions.The proportion of this part is nearly 10 percent.In the external level,due to different levels of risk size,different levels is designed different ways.Priority layer can be used in the upper and lower reaches of large enterprises or financial discount,while the middle layer and the secondary layer is a collection of security.The combination of internal and external levels can improve the credit,it can also protect the interests of investors from a variety of angles.This paper aims to provide a reference for the improvement of SME credit collection system and the development of the collection of debt.