Study On The Risks Of Longyuan Power’s Green Asset Securitization

At present,with the rise of the concept of green finance and the successive introduction of green bond policies,the green asset securitization market has developed rapidly,the scale of product issuance has also achieved explosive growth,and the problems faced by the green asset securitization market have gradually become prominent.At this stage,default events of asset securitization products continue to occur,and cases of rating downgrades continue to increase.As an emerging financing tool,green asset securitization has risks that cannot be ignored.By conducting a comprehensive risk assessment of asset securitization products,it is helpful for the relevant person in charge to discover and grasp the possible problems in the product production process in time,thereby fundamentally reducing the probability of risk occurrence.At this stage,domestic research on this aspect is relatively scarce.Therefore,strengthening the risk assessment research on asset securitization products is conducive to the healthy development and growth of the domestic green asset securitization market,and will have certain research space and research value in the future.Through a combination of theory and case examples,this paper explores green asset-backed securities.In terms of theoretical analysis,this paper mainly uses the literature review website to integrate domestic and foreign data in related fields,and based on this,divides green asset securitization risks into three categories,namely underlying asset-related risks and transaction structure risks.and credit subject risk.By distinguishing the three types of risks mentioned above in detail,we can find the reasons for the risks of green asset securitization products to the greatest extent.In the case analysis,this paper takes the green asset-backed securities successfully issued by Longyuan Power as an example.Research.Secondly,this special plan is briefly introduced,and the reasons and motivations for the company to implement green asset securitization as well as its own advantages and characteristics are analyzed and understood.Finally,identify and analyze the risk points of the green asset securitization.It mainly analyzes the quality risk of its underlying assets,the overdue payment risk and credit enhancement risk of underlying assets.Through research,this paper finds that Longyuan Power’s green asset securitization products have problems such as high concentration of underlying assets,long payment cycle,and insufficient internal and external credit enhancement measures.To this end,this paper puts forward suggestions such as selecting basic assets with scattered concentration,strengthening the supervision of cash flow each year,and moderately increasing internal and external credit enhancement measures.