Case Study On Risk Management Of Asset Securitization Of Wanjiang Financial Leasing Company

With the continuous improvement of the supervision system of leased assets securitization and the continuous expansion of the financial leasing industry,financial leasing companies have increased the scale of asset securitization products in order to increase the scale of financing and improve their asset structure.The discussion on securitization of leased assets has also become increasingly heated.In recent years,the economic growth rate has slowed down,the risks of business operations have increased,and the state has continuously strengthened the supervision of financial institutions.As a non-bank financial institution,financial leasing companies are particularly important for the risk identification and risk management of asset securitization.Financial leasing assets Relevant research on securitization risk management needs to increase depth and breadth.Wanjiang Financial Leasing Co.Ltd.is China's first financial leasing company listed on the “New Third Board”.The first phase of leased asset-backed securities issued by the company in 2017 has a lower issuance rate than its peers.The risk of securities is also lower than peers.Besides,the company accepts more comprehensive supervision from the market and institutions.The risk management model of this company is worthy of attention and in-depth study.Based on literature research and theoretical analysis,the author will conduct case analysis through risk identification,risk measurement,risk control measures analysis and risk management evaluation,and finally provide relevant suggestions.In the risk identification stage,it is found that there are risks in the asset pool,transaction structure and interest rate in the process of securitization.In the risk measurement stage,the risk is measured from the perspectives of yield,capital price and cash flow.In the analysis stage of risk control measures,it was found that Wanjiang Financial Leasing Co.Ltd.built a risk prevention mechanism combining internal control and external supervision.By setting up a special trust as a real sale asset of SPV and setting a credit trigger mechanism for risk transfer.The credit enhancement,the principal and interest amortization and the compensation mechanism within the trust account are used for loss control.The self-sustained subordinate securities are retained by risk,and finally some of the risks are controlled.The article further compares and analyzes the risk management under different modes of interbank asset securitization.In the risk management evaluation stage,it concludes that WanjiangFinancial Leasing Co.Ltd.asset securitization has lower risk management risk and more flexible cash flow,but for rating agencies,margins and assets.There is still room for improvement in risk management for concentration.Finally,in view of the deficiencies in the rent risk management of Wanjiang Financial Leasing Co.Ltd.combined with the characteristics of financial lease asset securitization,the author provides suggestions for the risk management of lease asset securitization from the perspective of policy,industry and company.It is hoped that the state will improve relevant policies,and financial leasing companies will build a sound risk management system to safeguard the interests of investors and ensure that enterprises can obtain reliable financing through asset securitization.