Research On Risk Management Of ABN

As a new type of debt financing instrument,asset-backed notes(ABN)have more choices in product structure design than other asset securitization models.Under the influence of macro-control policies,some real estate companies began to issue ABN due to limited financing channels.So,what are the risks of real estate companies issuing ABN products? How to deal with it? It has become a topic worth studying.This paper adopts the case study method and selects the first phase of Country Garden's 2017 Supply Chain Accounts Payable Asset-Backed Notes as the research object,using COSO risk management theory,in the transaction structure,main participants,investor profiles and basic assets.On the basis of the introduction,the risk of the product is evaluated and countermeasures are proposed.Provide reference for real estate companies to use AssetBacked Notes for financing.This paper believes that the main risks of real estate companies issuing ABN products : basic asset quality risk,credit enhancement risk,credit rating risk,default risk,operational risk and so on.The measures are: formulating detailed basic asset screening criteria,continuously tracking the operation of the product,adopting interest rates that can cover the principal and interest,supervising direct debtors,and setting strict product regulations.