Case Study Of Huarong Asset Management Company's MBS Project

With the in-depth development of asset securitization of four financial asset management companies in China,the securitization of residential mortgage loans,as an important financial technology and financial tool,has attracted much attention in China.China's implementation of housing mortgage securitization has a series of practical significance:to develop the housing finance system,to achieve public policy objectives,to introduce the concept of structural finance,to promote China's financial innovation,to increase the variety of financial products,to promote the perfection of the capital market,and so on.This paper takes China huarong asset management co.,LTD and shenzhen bao MBS can real estate co.,LTD.Cooperation projects,for example,using the method of case analysis,based on the underlying assets cash flow analysis theory,theory of asset restructuring,bankruptcy isolation theory,the theory of credit enhancement,in-depth huarong MBS project case problem to put forward the corresponding countermeasure and the suggestion.Research findings:(1)as a new financing channel in China,the financing threshold of MBS project is lower than the traditional financing mode,which is forward-looking.As the project sponsor,huarong asset management co.,ltd.can better meet the needs of the financing parties and investors while ensuring its own profit growth,setting a good standard for the industry.Huarong MBS project reduces the risk of default by setting up an asset pool and meanwhile increases the scale of securities issuance to achieve scale efficiency.(2)huarong MBS project should pay more attention to diversity in asset pool construction to further reduce credit risk and financing cost;And appropriately expand the financing scale,improve the diversity of issuing methods,release market liquidity;At the stage of securities design and issuance,we should pay attention to the correspondence between yield and default rate,publicize default risk and rating results,and reduce the impact of information asymmetry.