Case Study On CLO Risk Prevention Of Flying Construction Finance 2018-5 Bond Link

Asset securitization,as a very important innovative financial instrument in the 20 th century,plays an important role in the process of financial development.Credit asset securitization in China is a typical representative of it.With the continuous development and improvement of China's economic environment and social system,credit asset securitization has also achieved its own good development.Great achievements have been made in the development of credit asset securitization in China,which are manifested in the sharp increase in the number and scale of issuance,the increasingly rich types of basic assets and sponsors,the further expansion of the scope of investors and the improvement of market liquidity.However,as China's economy enters the "new normal",there are still a series of problems and constraints to be solved in the development of credit asset securitization,and the risk increases accordingly.With the opening of China's "Bond Link"(North Link)in 2017,it has had a positive impact on the asset securitization market.There are many "Bond Link" ABS projects in the asset securitization market.Among them,the Fifth Issue of Credit Asset-backed Securities in 2018(here in after referred to as "Flying Construction Finance 2018-5")is the first "Bond Link" CLO project.The successful issuance of this project reflects the enthusiasm and highrecognition of foreign investors in China's bond market.It also provides innovative ideas for the financing of credit asset securitization,which is of great significance for China's integration with the international bond market.Therefore,in this context,it is still necessary to study the securitization of credit assets,especially the risk prevention of credit assets securitization,in order to further obtain certain practical significance and experience.This paper will adopt the methods of literature research,experience summary and case analysis,and select the Flying Construction Finance2018-5 as the research object,based on the relevant theoretical basis of credit asset securitization,combined with the development of China's credit asset securitization market and the "Bond Link"(North Link).On the basis of introducing the background,specific information,development status,existing risks and risk prevention status of the Flying Construction Finance 2018-5,this paper makes an analysis and Study on the existing problems and causes of the problems in risk prevention of the Flying Construction Finance 2018-5,and finally draws corresponding conclusions and suggestions on strengthening risk prevention.