Research On The Securitized Products Of Internet Consumer Finance

After the first internet consumer finance securitized products appeared in 2015,the internet consumer finance develops quickly and its securitization market expands rapidly.However,at present,there are not many systematic researches,especially empirical researches,on internet consumer finance securitized products in China.This paper attempts to explore the status,characteristics,product design and issuance pricing of internet consumer finance securitized products through case analysis,linear regression and comparative analysis.On the one hand,it can provide a certain basis for investors to make investment decisions on the internet consumer finance securitized products.It also helps to summarize the development experience and to improve the pricing mechanism of the internet consumer finance securitized products.On the other hand,it provides a reference for the creditor holders of consumption credit to choose whether financing through asset securitization or not.This paper finds that the internet consumer finance securitized products’ characteristics,such as the maturity,the repayment mode of principal and interest,and the trading structure are different when the basic assets the securitized products built on are different.This paper also focuses on the issuance pricing of internet consumer finance securitized products.Through the theoretical analysis and the construction of the empirical model whose explained variable is issuing spread,it is found that the risk free interest rate,the maturity,the thickness of non-priority products,and original owner whether belongs to Alibaba or not have a significant impact on the issuing spread.As bonds have some substitution for securitized products for investors,the issuing interest rate or yield to maturity of bonds whose term are close to the internet consumer finance securitized products can be used as a reference for their issuance pricing.