A Case Study Of "Puxin2018-1" Non-performing Asset Securitization

Asset securitization(ABS)is an important innovation in the financial industry,which enables illiquid assets to obtain liquidity after asset restructuring and achieves great development in the us housing financial market.The research on asset securitization started relatively late in China.In 2005,China’s banking industry officially launched the pilot project of asset securitization.However,after the global financial crisis in 2008,China suspended the pilot work of asset securitization in the banking industry,and the asset securitization business was continued until 2012.At that time,non-performing asset securitization was still in the exploratory stage and was not allowed to be issued until 2016.However,in countries or regions with relatively developed financial markets,commercial Banks have generally used non-performing asset securitization to reduce non-performing loans and reduce the non-performing loan ratio of commercial Banks.In recent years,along with the prosperity of economy and financial industry,some negative problems have appeared,that is,the rapid growth of non-performing assets of commercial Banks.China has set up four asset management companies to deal with the non-performing assets of commercial Banks,so asset management companies have acquired a large number of non-performing assets of commercial Banks,but these acquisitions usually have some unfavorable conditions for commercial Banks,and may cause some follow-up problems,such as legal proceedings and asset fire sale.Commercial Banks are actively seeking for the disposal of non-performing assets,the commercial Banks have to look to the non-performing assets securitization,with the tools of non-performing assets securitization can largely avoid the above problems,it is so,this article choose Shanghai pudong development bank PuXin in 2018 the first phase of toxic asset-backed securities(hereinafter referred to as "PuXin 2018-1")that a typical product,because it is pilot after the restart of Shanghai pudong development bank to issue the first non-performing assets securitization products,is China’s non-state’s largest credit card issued by a share-holding commercial Banks non-performing assets securitization products,has a strong representation.Through the analysis of this case,some Suggestions are put forward to promote the healthy development of non-performing asset securitization in China.Based on this background,this paper from the specific case analysis.Firstly,the basic situation of the case is analyzed.To start with and then,from the case design steps,the first phase of non-performing asset backed securities PuXin 2018 has many advantages,such as the underlying asset restructuring after the overall high quality,reasonably priced and credit promotion measures of assets in place,etc.,this paper adopted the methods of analytic hierarchy process(ahp)and event study method on product pricing,risk effect and effect analysis,preliminary analysis results show that in the short term of Shanghai pudong development bank’s share price fell,but in the long view,issuance of non-performing assets securitization product not only effectively improve the bank’s management,This strengthened the idea that Banks could issue such products to reduce their non-performing assets.To sum up,the advantages and problems of puxin’s first phase of non-performing asset backed securities in 2018 are listed.From the perspective of the government and initiator institutions,policy suggestions are put forward,.