Research On Asset Securitization Of Long-Term Apartments

Nowadays,with the development of the economy,the number of the floating population has been increasing.Because of many employment opportunities,large number of floating population cause thriving rental markets.Long-term apartment companies are important in the rental market,so they are paid more attention to.For promoting economic development and improving the quality of life of the masses,our country adopted many policies of supporting the development of the rental market.Under this background,the long-term apartment industry has developed rapidly.With the support of the government,many long-term apartment companies have expanded through various financing ways in the past two years in order to seize the market quickly and grow stronger in the industry.Because asset securitization can quickly activate enterprise assets,issuers can reduce the risk that investors must endure through risk isolation,credit enhancement and other measures,and can flexibly design products to meet the market demand,so asset securitization has been favored by many long-term apartment companies.As the largest long-term apartment company in China,ziroom successfully issued its first asset securitization product in August 2017,which is the first asset-backed security financing mode combining long-term rental apartment with consumer finance in China.From several long-term apartment securitization products,We can find that these products' cash flow depends on the operation ability of long-term apartment business.As an important financing means,the healthy development of long-term apartment securitization not only plays an important role in the long-term apartment industry,but also relates to the interests of many tenants.This paper chose this product as the case study object,firstly elaborated the research background and significance,secondly combed the relevant research and theoretical basis at home and abroad;then it introduced the development status of asset securitization of long-term apartments,including the types of asset securitization of long-term apartments,the mode and characteristics of asset securitization of long-term apartments,the current situation of the long-term apartment industry and relevant national policies;after that,it introduced this product from four aspects: basic assets,transaction structure,risk and pricing.This paper made an analysis,especially in the aspect of pricing,by using the qualitative and quantitative analysis method,comparing the interest rate of the product with multiple interest rates and combining with the basic situation of the underlying assets,it simulated the trend of future interest rate and forecasts its future cash flow by using the foreign pricing model to get the theoretical price of the product and made evaluation.Finally,this paper put forward suggestions from several levels such as the credit system level,regulatory level,legal level,securitization market construction level,for hoping the development of long-term apartment securitization and the normative market.There are two main innovations in this paper.First,from the perspective of the topic selection,long-term apartments have just emerged in China in the past two years,which play a very important role in meeting the housing needs of tenants.A good financing market can help enterprises develop better.Studying the asset securitization of long-term apartments is significant.Second,the researching method of this paper includes case and empirical research.In the pricing analysis part,qualitative analysis is followed by quantitative analysis,which strengthens the persuasion of the article.