| Mortgage-backed securitization is one of the great financialcreations. It has been spreading and developing quickly in the world afterits birth. The reason why it is widely accepted is that it benefits to eachparticipators. As far as institutional investors, such as life insurancecompanies, MBS (mortgage-backed security) provides a new investmenttool for them. The thesis first introduces the knowledge of MBS, thesource and principles of investment of life insurance fund, analyzing theapplicability and risks of investing life insurance fund in MBS. Thencombining the practices in china, the paper analyses the background andmeaning of investing life insurance fund in MBS in china. Based theanalysis of Chinese practice, put forward the strategic step and makesome suggestions for life insurance company to invest life insurance fundin MBS. The dissertation is divided into four chapters. The main content asfollows: Chapter 1 introduces the relevant knowledge about MBS briefly.This chapter starts from the operating steps and participators ofmortgage-backed securitization in order to give readers understand MBS.Then this chapter introduces the characteristics and kinds of MBS. Last,through introducing the issue of MBS and investors in the foreign MBSmarket, we bring out a standpoint that the life insurance company is oneof the important investors of MBS. In fact, this chapter is the foundationof the whole paper. Chapter 2 analyses the investment of life insurance fund in MBS intheory. The investment of life insurance fund depends on its source, so wefirst study the source and investment principles of life insurance fund.Based on this, the paper analyzes the applicability of investment of lifeinsurance fund in MBS. (1) Because of techniques of bankruptcyisolation and credit enhancement, investing in MBS is safer. (2) Investorshave higher profit. (3) MBS market has higher liquidity. (4) MBS accordswith the matching principle of investment of life insurance fund.Moreover, to invest in MBS can enlarge the investment scale of insurancecompany, disperse investment risks and receive social benefits. Last, thischapter studies the risks of investment in MBS that are in broad sense,including the risks of mortgage-baked securitization and risks ofinvestment in MBS. Chapter 3 analyses the background, meaning and existing problemsof investment in MBS of life insurance fund in china. On the one hand,MBS will be created in a short term. On the other hand, the investmentof our life insurance fund now is not in a good status. Under this situation,to invest in MBS not only find a new investment tool for life insurancecompanies but also will improve the MBS market. However, there exist alot of problems. Above all, it is hard to widely develop mortgage-backedsecuritization. In the aspect of support, scale of mortgage is smaller,standard of mortgage is not uniform and commercial bank's wish totransfer mortgages is not stronger. In the aspect of demand, eligibleinstitutional investors are few. In the aspect of system, there existobstacles in law, accounting, tax and authoritative agencies. Moreover,investment of life insurance fund will meet problems such as law,supervising, investment management and so on. Chapter 4 offers a strategic step and makes some suggestions forinvesting our life insurance fund in MBS. We could not wait until allconditions are provided with. According to practices in china, we have tofollow this step: firstly investing abroad, then investing home; firstlymaking experiments, then broadening investment. At the same time, weshould quicken the pace of mortgage-backed securitization, update thethinking of insurance investment in order to prepare to invest in MBS,amend related laws so as to clear the track of investment, set up aneffective system to control investing risks and bring up persons withability to invest in MBS. The article possesses the following innovations: 1.Updated theme. The investment of life insurance fund is a clichéand there are piles of relevant documents. Mortgage-backed securitization... |
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