Research On Auto Finance Leasing Asset-Backed Securities

At present,the production and sales of automobiles in China are in the leading position in the world.In 2019,affected by Sino-US trade war and many other factors,the transformation and upgrading of China's automobile industry will be blocked and faced with great pressure.Data from the China's Association of Automobile Manufacturers shows that the number of cars per thousand people owned in China is about 173 in 2019,which is still far behind many foreign countries.This data shows that there is still a large space for the consumption potential of cars in China.On the other hand,it also shows that the development space of auto finance business in China can still be explored.In recent years,China's auto financing lease industry in policy helped to get greater development,but the market penetration rate is only 6%of the industry,compared with 15% of the world's leading country permeability,there is a big gap.This suggests that the financing lease industry in our country is not mature enough,but on the other hand,it also shows that the financing lease industry in our country still has great development possibilities.But a big obstacle for the development of financial leasing industry is a cash flow problem.Financing leasing companies have difficulty financing through traditional financing channels such as bank loans.The emerging Asset-Backed Securities,a kind of financing method,with its low threshold and other advantages,has become an important channel for financing leasing companies,greatly enriching the financing structure of financing leasing companies,and helping financial leasing companies to break through business development bottlenecks.With the deepening of financial innovation in China and the deregulation of Asset-Backed Securities by regulators,it is expected that leasing Asset-Backed Securities will gradually become a regular financing channel for leasing companies.This paper summarizes the research results of domestic and foreign academic researchers on the Securities of financial leasing assets,combined relevant theories with practical cases,and studies the second phase of asset support special plan of YuanDa lease in 2019,hoping to provide some references for relevant enterprises in the automobile financial leasing industry.In the case introduction,the transaction structure of the special plan,the situation of the basic asset pool and the design of Asset-Backed Securities products are mainly sorted out,so that readers can have a preliminary understanding of this case.The main part of the article is Chapter 4 and Chapter 5.In the case analysis in Chapter 4,firstly,the motivation of Asset-Backed Securities ofYuanDa Leasing is analyzed from the perspective of external financing demand and external market demand;Secondly,it analyzes the underlying asset pool of the Asset-Backed Securities project;Then,from the perspective of internal credit enhancement and external credit enhancement,the credit enhancement method of the case is analyzed;Next,the cash flow of the special plan is analyzed,mainly analyzing the future cash flow forecast and cash flow stability;Finally,the risks faced in the implementation of the entire case is analyzed,including cash flow forecast risk,lessee default risk,interest rate risk,leased asset concentration risk,early lease withdrawal risk and asset mix risk.The last chapter summarizes the merits,problems and suggestions of the special plan.The merits of the special plan include rich credit enhancement methods and stable funds in the underlying asset pool.The improvement of the special plan includes low product liquidity,excessive concentration of basic assets,the lack of "real sale" of the basic assets in the special plan,and the SPV established by the securities firm that does not have the legal subject status.Finally,suggestions are made from the three aspects of original stakeholders,relevant stakeholders and regulatory authorities.As an original stakeholder,we should improve the legal contract,reduce the risk of prepayment,optimize the structure of the underlying asset pool,and improve the credit rating;as relevant stakeholder,we should improve the information disclosure system and establish a comprehensive internal control system;as a regulatory department,strictly review the financial leasing enterprise license application,coordinate the business of major exchanges,and avoid unfair competition and regulatory arbitrage.