A Case Study On Risk Control Of Asset-backed Notes Financing Of Y Company

Based on the case study of the financing risk of the first phase of asset-backed notes of Y company in 2019,this paper summarizes the risks and corresponding risks of asset-backed notes through case analysis from the perspective of underlying assets,basic assets and transaction structure risk control measures.The research process can be used as a reference case for private preschool education enterprises to carry out asset-backed note financing risk control.This paper is based on the following practical background.Since 2012,asset securitization has gradually become an important financial tool for China's financial services to the real economy.In 2016,China implemented the comprehensive two child policy,and in 2018,China promulgated the law of the people's Republic of China on the promotion of Civil Education(2018 Amendment).Multiple policies promote the healthy and orderly development of private education industry,and attract more and more commercial institutions to cross-border access.In addition to the limitation of traditional financing mode,private education has stepped into the field of asset securitization to further expand financing channels.Y company's asset-backed note financing risk control is a typical case in China's education asset securitization.In this case,the financing subject corresponding to the underlying assets is ten private kindergartens scattered across the country,and the single borrower's assets are small in scale and lack of market influence.Through the transaction structure design of double SPV,the financing needs of ten borrowers are cleverly integrated in the way of fund trust,and then ABN is established to raise funds by accepting the trust income right.This paper analyzes the different schemes of Y company's asset-backed notes from the perspectives of underlying assets,basic assets and transaction structure.Through data statistics,literature review and other methods,DSCR is used to quantitatively assess the credit risk of this case and summarize the corresponding risk control measures.This study found that: First,Y company's asset-backed notes financing business faces many risks.The successful development of the business mainly comes from the correct prediction and identification of risks.Second,Y company's asset-backed notes set up and implement effective risk control strategies.Third,the double SPV structure of education asset securitization business needs to strengthen the risk control of the underlying assets,basic assets and trading structure.Fourth,the issuance of Y company's asset-backed notes is of great significance to private preschool education enterprises.The case study of this paper can provide theoretical guidance and reference for private preschool education enterprises to carry out effective risk control in asset securitization financing business.