Research On Asset Securitization Of Auto Financing Companies

In the context of the current new normal of China’s economy and the tightening of loan policies,auto finance companies have bottlenecks in financing and loan acquisition channels,unable to meet the needs of business growth,and attempt to solve the problem through "asset securitization" financial means.The research object of this paper is the auto loan mortgage project of brand D auto finance company.With the rapid expansion of the company in recent years,the capital increase channels of "parent company capital injection" and "bank loan" have certain limitations,which hinder the business development of brand D auto finance company.Therefore,this paper attempts to expand financing channels in the field of auto finance through asset securitization,and puts forward targeted improvement Suggestions for the problems in the process of asset securitization of d-brand auto finance companies and the risks existing in the current situation of asset securitization.Based on the basic theory and principle of asset securitization,this paper makes a comprehensive analysis of the status quo of asset securitization process of d-brand auto finance company through the example analysis method,so as to improve the problems and risks found.Through the survey method,this paper analyzes the development situation,financing channels and financing problems of d-brand auto finance company,and finds that the traditional "capital injection from the parent company" and "bank loan" channels cannot meet the development needs of d-brand auto finance company.However,in terms of external environment,"mature securities market" and"development opportunity of financial market" have good support for asset securitization,and in the internal aspect of brand D,"brand expansion and development need" and "existing stock outstanding loan" have favorable advantages for the development of asset securitization.The case study finds that(1)brand D auto finance company has issued asset securitized securities products with a scale of 800 million yuan,the participants have"good qualifications",the process design is "relatively reasonable",and the capital pool has a good "capital pool foundation" and "capital sustainability".(2)in terms of securities trading pricing,the static cash flow yield method is used to calculate that the cash flow yield is "higher than the Treasury bond yield in the same period".(3)the credit enhancement method mainly adopts internal enhancement means for control,including "transaction layer design","complete trigger mechanism" and "setting up reserve account"(4)in terms of risk,it has low credit risk and operational risk,but there is "capital pool transfer risk".By summarizing the above status quo,it is concluded that the financial asset securitization products of D automobile brand company have problems of "failing to utilize external credit enhancement" and "failing to effectively isolate bankruptcy through SPV".In view of the existing problems of d-brand auto finance company,from the perspective of the participants of asset securitization,d-brand auto finance company should make improvements in three aspects:optimizing the capital pool,reducing the operational risks of asset securitization and increasing the means of external credit enhancement.From the perspective of industry development,the originator of credit securitization should strictly regulate the loan process and strictly follow up the post-loan management.At the national level,asset securitization laws and regulations,credit rating system and liquidity of asset securitization should be improved.