Research On The Application Of Non-bid-to-bid Asset Securitization

The non-standard business is the product of financial innovation.It has achieved rapid development in the past few years by virtue of its advantages,such as its avoidable of the restrictions from conventional mortgage polic ies,considerable financing efficiency,more flexible structure and capable to conduct personalized design for different enterprises.However,with the rapid growth of non-standard business scale,its hidden risks become more and more serious.Therefore,the people’s bank of China,China insurance regulatory commission,China securities regulatory commission and other relevant departments held many meetings and issued relevant regulatory documents,Among them,the representative one is the new asset regulation.While the non-standard business is limited,the ABS business which has developed rapidly in recent years,is exempted from the "new asset regulation".Therefore,people from all walks of life urgently need to find some reasonable and effective methods to make the non-standard business become standard by using ABS.However,considering the big scale of non-standard asset,and various assets have characteristic ownership problems and properties,such as different risks,and the assets regulatory documents is issued recently,the way to use the ABS business to transform non-standard assets is still in a time of active research,and there is no authoritative and highly promotable scheme.So this thesis takes the ABS business,whose underlying asset is house-purchase balance payment,of BRC company as an example to study the transaction structure and risk isolation measures of ABS business,and finally summarize the key points of transforming the non-standard asset to standard in the practical application of asset securitization,so as to provide some experiences about how to use the ABS business to transform the stock of non-standard assets in the future.This thesis firstly sorts out the domestic and foreign literatures related to non-standard business and asset securitization,which makes me have a certain understanding of their theories,operation modes and development status.Secondly,after a lot of screening work,I finally chose the recently issued and representative ABS business of BRC company’s house-purchase balance payment as a case to do in-depth study,such as analyze the characteristics of the underlying assets,the design of transaction structure,risks assessment,credit enhancement measures and other investor protection mechanisms.After that,summarize the key points of Criteria for selecting underlying assets,the design of transaction structure,the internal and external credit enhancement measures and the bankruptcy isolation mechanism in the process of ABS business which meant to realize non-standard assets transformation.Finally,take the current regulatory regulations,trade system and the current situation of the development of non-standard assets’ transformation and into consideration,then draw the conclusion about how to use ABS business to transform non-standard assets,and put forward targeted improve Suggestions.