Research On Benefits And Risks Of Asset-backed Securitization-Take JD Bai Tiao Securities As An Example

Asset securitization is the largest financial innovation in the financial market in the 1960s.It is based on the cash flow generated by assets.It separates and restructures the income and risks of assets.As a new type of financing instrument,based on predictable cash flow,repay the principal and interest of the issuance of securities.Asset-based securitization can bring benefits to all participants and achieve win-win results.The main research of this paper is analyzing the possible gains of the main participants of asset-backed securitization.The reasons for the benefits.And it analyzes the risks involved in the various aspects.The causes of risks,and the impact of risks on the benefits.It try to build a framework that covers the benefits and risk analysis of asset-backed securitization.The idea of this paper is to analyze the theory of asset securitization from the three main aspects of the participants of asset securitization,operation mechanism and principle.Secondly,the case of JD Baitiao Asset Securitization was outlined.It will analyze the micro-revenue brought by the asset securitization of JD Baitiao.Afterwards,analysis of the risks arising from asset securitization.The expected findings of this paper are as follows:(1)Receivables Asset securitization can broaden the financing channels,improve asset liquidity,reduce financing costs,and it can play a role in enhancing corporate value of JD.(2)Asset backed securitization can reduce credit risk and enable investors to receive excess returns.(3)Asset-based securitization can improve the diversity of profit sources of financial institutions.(4)Asset-backed securitization will also increase the risk while bringing benefits to all participants.Without a necessary risk management mechanism,investors will suffer huge losses.The significance of this paper is that this paper constructs an analysis framework that covers the benefits and risks of each participant in asset securitization.It is a synthesis and supplement of existing literature.Secondly,this article takes the Internet consumer finance as a case for analysis,which has reference value for the potential benefits and risks of e-commerce companies in launching Internet financial services at the current stage.