Research On The Risks Of K Company’s Auto Finance Lease Assets

With the continuous improvement and innovation of financial leasing and asset securitization,automobile financial leasing business has been accepted by more consumers,and the securitization of automobile financial leasing assets becomes an important means for enterprises to replenish capital.However,affected by the epidemic,the entire automobile consumption industry chain has been greatly impacted.In addition,the current frequent occurrence of credit events in the capital market makes it very important to study the credit risk of securitization of auto finance lease assets.On the one hand,it can bring a more objective and in-depth understanding of risks for the investors of leasing asset securitization products;on the other hand,it is conducive to enriching the research in the field of asset securitization risks,and for the design of transaction structure and the selection of basic assets in practice.The link provides some experience.Based on cash flow analysis theory,asset reorganization theory,risk isolation theory,credit enhancement theory and information asymmetry theory,this paper introduces the definitions related to the research and the current development of my country’s financial leasing and asset securitization market.It reveals the formation mechanism and risk types of asset securitization risks.Take the “HS Phase I” asset-backed special plan issued by K Company as an example,along the main line of credit risk categories,this paper analyzes the risks of asset-backed securities of automobile financial leasing from three stages:selection of basic assets,design of transaction structure and survival management.At the same time,it introduces the risk prevention measures taken in the case in detail,and uses the cash flow stress test to measure the size of the product risk.Through the above analysis,this article concludes that the HS Phase I has a relatively high degree of concentration in the basic asset industry,the rent withdrawal rate and default rate of lessees are on the rise,the qualifications of the original equity holders are weak,and the credit enhancement measures are insufficient.According to the characteristics of auto finance lease involving a large number of assets and strong dispersion,through further research,this article believes that the operation and internal control capabilities of the original equity holders are very important in the securitization of auto finance lease assets.