Case Study On The Design Of Domestic Asset-backed Notes Products

Asset-backed note is an innovative debt financing tool based on asset securitization launched by the National Association of Financial Market Institutional Investors(NAFMII)in August 2012.Asset-backed note tends to be separated from the credit level of the sponsor,and the cash flow generated by the underlying asset is supported as repayment,thus broadening financing channels of the low credit level companies.However,development of domestic asset-backed note is still in its infancy.The number of product distribution is small,and the product design is simple.The design of asset-backed note is a key factor in financing.Therefore,it is of great significance to study the product design of asset-backed note.Based on the analysis of the basic theory and principle of asset-backed note,and the development and historical experience of American capital market,this paper analyzes the problems in the development of domestic asset-backed note products.On this basis,the paper focuses on the analysis of asset design and actual case of asset-backed note in China.Product design influences its function from the structure design,the choice of basic assets,risk isolation measures,cash flow matching,credit enhancement measures,risk prevention and other aspects.This paper analyzes the characteristics of asset design,based on the Asset-Backed Note product of Jiuzhoutong Pharmaceutical Group Co.,Ltd.in 2016.Through the analysis of the company's asset-backed note product design,this paper finds out the merits and shortcomings of the case for the future design of asset-backed note products for reference.Finally,it puts forward some suggestions on the development of asset support bill products in China so that China's asset-backed note products can develop faster and better.