The Study Of China Assets Securitization Based On The U.S.Sub-prime Mortgage Crisis

Assets securitization raised in the United States in 1970s,which could transform the assets of origination to better fluid securities through the means of the recombination of assets and the improvement of credit, and will also take the stable income to the investors in the next future. Based on this situation that participants can benefit from assets securitization, it developed universally and quickly all over the world. Junior bond was based on the sub-prime mortgage securitization. Since 2001 the real estate market of United States began to heat up, and the sub-prime mortgage market grew fast. However, the real estate market continuously dropped because the Federal Reserve interest rate had increased for 17 times between 2004 and 2006, which caused the problem of Sub-prime mortgage initially. When the New Century Financial Corporation declared bankruptcy in March 2007, junior bond crisis appeared. In the subsequent year the risk of junior bond was exposed, which resulted in the outbreak of the global financial crisis. The asset securitization has already been carried out in China, so we should summarize the lessons learned from this junior bond crisis, which have great significance to improve the assets securitization development and increase risk control in the asset securitization.The article first introduced the correlative theories of the asset securitization, and the characteristics and the basic flow of the asset securitization. Second, the article introduced the flow and reasons of U.S. sub-prime mortgage. Third, the article analyzed China asset securitization. Finally, Combining the U.S. sub-prime mortgage, we should analyze and summarize China asset securitization, revelation from this crisis to avoid repeating the mistakes of the United States, which could make asset securitization market of our country runs efficient and moderate.