Study Of The Pricing Model For Asset Securization Products Issued By Small Loan Companies

For a long time,small loan companies have been suffering from financing difficulties,expensive financing and limited financing scale.With the increase amount of asset securitization products issued by small loan companies in China,this mode has become a trend to improve the turnover rate for small loan companies.During this process,the key to ensure that asset securitization successfully carry out is how to determine the surface interest rate properly.On the basis of the concept of the weighted loan interest rate of the pool should more than the administrative cost of the small loan company plus the surface interest rate and the issuing cost of the asset backed securities,this paper analyzes the composition of the pricing of the asset securitization products,the issuance cost of the asset securitization,the related tax,the loan determination factors and pricing model.Taking the Guoxin-Hanhua asset securitizationas products as an example,combined with the Matlab software,with the help of the single factor Copula model and the CIR model,the credit risk premium and the early compensation risk premium of the asset securitization products are measured respectively.After comparing the results of the empirical analysis with the initial pricing in the product instructions,we found that: first,the price of the asset securitization products is too low so that the credit risk and the early repayment risk of the product are not fully reflected in the coupon rate of the product.Second,the main reason for the low price of coupon interest rate is the fact that the price of the interest of the loan is too low for small loan companies.Third,the higher distribution cost and higher operating cost narrow the profit space of the asset securitization product greatly.Based on this,this article from the angle of reducing the operating cost,tax and distribution cost,from the legal and the supporting measures level respectively to give corresponding policy recommendations.Based on outcome above,this paper puts forward corresponding policy suggestions from the perspective of laws and regulations and the perspective of supporting measures.At the perspective of laws and regulations,the government should make clear the legal status of small loan companies,and give preferential tax policies for the asset securization products.What is more,information disclosure mechanism should be improved;At the infrastructure level,we proposed to establish government controlled insurance companies and credit institutions,encourage the localfinance office to play a coordinating role in the organization,and reduce the access threshold for investorsand establish appropriate asset backed securities yield curve.Only by reducing the operation cost of small loan companies and the issuing cost and threshold of property rights,can more small loan companies participate in the process of issuing the proceeds of assets,and enjoy the convenience brought by the widen financing channels.