The Application Of The Asset Securitization Of Rent Installment Loan In Long-rent Apartments

With the increasing number of floating population in big cities in China,the housing rental market in China shows a clear shortage of supply and demand.Under this background,the long-term rental apartment industry has developed rapidly,and the state has also given strong support in relevant policies.However,there are many problems in the long-Rent apartment enterprises,such as large investment in the early stage,narrow financing channels,high financing costs and slow capital turnover.The common financing methods can not meet the development of the long-Rent apartment enterprises gradually.By contrast,issuing asset-backed securities can effectively solve the traditional financing problems of long-Rent apartments.Asset securitization has become the best way to solve the financing problems of long-Rent apartment enterprises.The main innovations of this paper are:(1)The traditional real estate ABS usually pays attention to the financial assets formed by house purchasing.Ziroom No.1 is the first time to use rent instalment loan as the underlying asset of ABS.Therefore,the research based on Ziroom No.1 is of great value for asset securitization financing of long-Rent apartments in China,and can effectively fill the gap of this product in the market.(2)Previous research on asset securitization products of long-Rent apartments focused on transaction structure and qualitative risk,but less on cash flow and quantitative risk.This paper analyses the cash flow under the complex transaction structure of Ziroom No.1.At the same time,it ranks the main risks,and the research ideas are relatively new.Starting from the current financing situation of long-Rent apartment industry in China,this paper summarizes and compares the products of asset-backed securities existing in long-Rent apartments in China,and draws the advantages and characteristics of asset securitization in long-Rent apartments.Taking Ziroom No.1as an example,combining the basic theory of asset-backed securities and the actual situation of long-Rent apartment market in China,this paper explores theadvantages and risks of Ziroom No.1 products from various angles: from the market outbreak,expanding financing channels and having excellent basic assets,etc.Reasons for issuance;Principle explanations and practical analysis of Ziroom No.1's double SPV trading structure and establishment of circulating lending mechanism;Reasonable model formulas for Ziroom No.1's cash flow reimbursement model,comparison of cash flow status under benchmarks and different situations;collation and analysis of Ziroom No.1's upgrading mode and reasons for obtaining AAA rating.Contrastive analysis.At last,according to AHP,the paper carries out the hierarchical risk assessment analysis of Ziroom No.1,and evaluates the four dimensions of the risk related to the asset support plan qualitatively and quantitatively,and explains the rationality of the ranking results.Through the above cases and risk analysis,this paper summarizes the advantages of Ziroom No.1,its own unique problems and the common problems in asset securitization products of long-Rent apartments.Finally,from the perspective of enterprises themselves,regulatory level,plan managers and other relevant institutions,it puts forward some suggestions on asset securitization financing for similar enterprises and long-Rent apartments.Through the product analysis and risk analysis of Ziroom No.1,I hope it can play a reference role in issuing the same type of asset securitization products in the future.