Research On The Company's Financing Operation Model Of Asset-backed Note

Asset-backed note(ABN)is a type of securitized financing instrument issued in a structured manner.Its main purpose is to obtain financing through asset support.Income is paid based on the cash flow of the underlying asset.The payment model is usually regular repayment of principal and interest.It has structural characteristics of asset securitization.And it is an innovative direct debt financing tool that can be used by non-financial companies.It has positive significance in expanding financing channels,revitalizing stocks,and reducing leverage.In 2012,the interbank market issued guidelines formally introducing ABN to the domestic capital market.However,due to institutional defects,ABN had a small amount of issuance,developed slowly,and the market had limited understanding of them.The domestic market had limited understanding of it.In 2016,the release of the new guidelines added operability and flexibility to ABN.The development of ABN has just begun,and there are still many restrictions and shortcomings.and there are still deficiencies and restrictions.What's more,most of the research on ABN before the new version of the Guidelines was incompatible with reality,and systematic research was still lacking.Therefore,it is of practical and theoretical significance to study the financing operation model of ABN.Based on the combination of theory and practice,this paper takes Yuhong ABN as a case to study the company's financing operation model of ABN.Above all,this article reviews the development of US asset-backed commercial paper(ABCP)to obtain alert and inspiration from ABCP before and after the subprime crisis.Then this article analyzes China's ABN market and discusses its necessity and existing problems.Then,this article analyzes the core issues in the financing operation model of ABN.At the same time,this article compares and analyzes similar financing instruments,and explores the financing characteristics of asset-backed notes issued by enterprises.Next,this article takes Yuhong ABN as a case,and conducts an in-depth analysis of the case on the basis of combing the company's financing background and the basic elements of Yuhong ABN.The article conducts research on the underlying assets,transaction structure,risk isolation,credit enhancement and other aspects of the operation model of Yuhong ABN.The article uses a combination of quantitative and qualitative method to comprehensively evaluate the financing effect of issuing ABN under this financing operation mode from three aspects(short-term operating performance,long-term operating performance,financial risk).Based on the analysis,the characteristics of the case are summarized to provide a reference direction for other companies to carry out such financing activities.Finally,this article summarizes the full text and comes to some conclusions.First,China's ABN market has a strong need for development and great development potential.Second,the operation mode of ABN which is the key to helping companies achieve high-quality financing should meet the following conditions: high guarantee for the recovery of underlying assets,scientific fund pool design,transaction structure in accordance with the characteristics and financing requirements of the company,and efficient credit enhancement mechanism setting.Third,ABN can revitalize the company's existing assets by constructing a good operating model,which can not only meet company's financing needs,but also help optimize its asset structure and enhance wealth effects.This article also proposes policy recommendations for the current ABN market which have certain reference significance for further perfecting and advancing the development of domestic ABN and asset securitization market,and then boosting China's real economy.