The Thinking Of Auto Loan Asset Securitization

It has been more than ten years since China’s first issue of auto loan asset-backed securities.Now there are still many problems in China’s auto loan securitization.In order to understand the development status of China’s auto loan asset securitization and explore other financial problems in China’s auto finance market,this paper selects a product issued by SAIC Finance Company-"ShangHe2018",taking this product as a case to study the auto loan securitization in China.This paper first introduces the issue of "ShangHe2018",the assets of the pool and the method of credit enhancement.After that,taking these three aspects as the research direction,the status of China’s auto mortgage loan-backed securities and China’s auto finance market from three directions was analyzed.In the study of the issuance of auto loan securitization products,it is found that:first,most of the auto finance companies as promoters are subsidiaries of auto groups,lacking independence;secondly,the high interest rate issuance method can increase the bond turnover rate,and enable investors to understand enterprises and help enterprises to carry out continuous financing.However,the way of issuing asset-backed securities at high interest rates is Increase financing channels and increase financing costs.Research on the pooled assets of auto loan securitization products found that:first,the current low interest rate auto loans can increase working efficiency,but also increase the cost of securitization;second,the age of auto loan borrowers The distribution is roughly the same,and auto finance companies do not focus on the age characteristics of borrowers.In the study of the credit enhancement of auto loan securitization products,it is found that: first,the layered mechanism can provide credit enhancement for products,but not all auto loan securitization products on the market have a rich layering mechanism.Second,many auto loan securitization products have a higher proportion of sub-prime loan asset-backed securities,but no over-collateralization has been set.Third,the allocation of funds has not been prioritized to protect the interests of the superior level of asset-backed securities in accordance with the tiered mechanism.In order to solve the above problems,this paper proposes the following solutions:first,in the issue of bond issuance,improve the auto finance market,promote theone-to-many cooperation mode between auto finance companies and auto groups,and set appropriate bond interest rates when bonds are issued.Second,in terms of asset pools,we should focus on energy-saving,environmentally-friendly loans for new energy vehicles and focus on loans to young people,which can effectively help companies expand their customers and achieve sustainable development.Third,in terms of credit enhancement,the tiered structure should be optimized and the number of tiered layers should be increased.The subordinated securitized products can convert their subordinated asset-backed securities into over-collateralized,and the funds are allocated in a non-complete order.The mode is changed to full order payment.