PPP Asset Securitization Analysis

PPP(public-private-partnership)refers to a franchise agreement between the government and social capital based on the provision of public services and public goods,forming a partnership of "interest sharing,risk sharing,and full cooperation",The advantage of the PPP model is to enable the partners to provide a certain public service or product with higher efficiency,which can alleviate the government's financial pressure and social capital will play an important role.Through government supervision and enterprise implementation,the optimal allocation of resources are realized..As of December 31,2018,there were 8654 management warehouse projects with an investment of 13.2 trillion yuan.The number of landing projects increased by 1962 in 2017 and the net investment increased by 2.6 trillion yuan.However,since PPP projects are invested in infrastructure with long construction time,large investment amount and long return period,the overall participation of the market is not enthusiastic.The government gradually liberalized the restrictions on the basic assets of asset securitization,and promulgated a series of policies and regulations to support the combination of PPP projects and the securities market.The asset securitization market in China has gradually begun to become active.This paper takes the Jinglan Muhe PPP project sustainable development asset support special plan as an example for case analysis.The asset support special plan is the first PPP project sustainable development asset support special plan in the country,so this paper can provide PPP asset securitization market very good reference and guidance.This paper is divided into five parts,introduction and literature review,related theoretical background,case introduction,case analysis and product pricing analysis,conclusions and recommendations.The first part puts forward the background and significance of choosing Jinglan Muhe PPP asset securitization project,and sorts out the domestic and foreign literatures of PPP asset securitization.The second part introduces the related concepts of PPP asset securitization and integrates the theory of related pricing and risk.The third part introduces the basic situation of the case,and briefly summarizes the case from two aspects:transaction overview and risk disclosure.The fourth part analyzes the Jinglan Muhe PPP asset securitization project from the three analysis angles of motivation analysis,project element analysis and pricing analysis.In this paper,the CIR model and Monte Carlo simulation method are used to calculate the theoretical price of the bond by calculating the option adjustment spread of the bond with the bond,and this paper also considers the choice of the benchmark spot yield curve in the process of calculating the adjusted interest rate of the option is subjectivity,so if the option adjustment spread is raised or decreased by 25 bp and 50 bp respectively,then the theoretical price of the bond is calculated,and the reasonable range of the theoretical price of the product is finally obtained from 94.15 yuan to 97.12 yuan,so that the market price can be observed.Whether it is within the theoretical price range,you can make a corresponding investment judgment.The fifth part proposes some corresponding policy recommendations based on the conclusions.The selection of the case in this paper is relatively novel,and the national's first sustainable development asset support special plan is taken as the research object for case analysis,which provides a good reference for the structural arrangement,mechanism design and pricing analysis of sustainable asset securitization products in the future.It provides a good understanding of the issuer financing method and the investor's investment analysis.