Study Of Rainbow Department Store Asset-Backed Securitization Financing Mode

Asset-Backed Securitization indicates the cash flow generated during the period concerned may be sold to SPV in the manner of setup of special purpose vehicle if there the pool of assets is composed by one or several assets and expected cash inflow may produce over a period of time in the future,with the aim of achieving earlier realization and financing purpose of the cash flow in the future.SPV may raise or purchase the funds of corporate cash flow by raising self-held securities to the public.This way may be utilized to achieve the corporate financing and the goals of assets structure optimization and risk isolation.Compare to traditional financing made,the most advantage of the asset securitization lies in optimizing the structure of assets without adding the corporate debt while improving internal financial conditions of the business,the risk isolation is achieved by virtue of "true sales" of underlying assets to SPV,and financial liquidity of the enterprise is improved,facilitating the realization of the investment plan or strategy of the enterprise in the future.The influences of financing mode of Rainbow Department Store on the risk control,financial effects,financing cost and cash flow and existing drawbacks of special plan are analyzed.And the asset securitization is compared to the debt financing,equity financing and financial leasing,the characteristics and development status of REITs in China are deeply analyzed,and the problems like unsound legal system,failure of tax break on REITs due to the unavailability of substantive policy and others still remaining to be improved are deeply analyzed.The development prospects of asset securitization in the future including the way to resolve the problems like assets liquidation,business deleveraging,market investment and others remaining to be addressed under the precondition of balanced risk are explored.