Case Study On Mortgage Asset Securitization Of VFC

Automobile financial company is combination of car company and financial. When the buyers don’t have enough money for a car, the auto financial company will provide personalized car loan service. From this perspective, auto financing provides financial services for auto enterprise and promote sales promotion, so as to realize the rational allocation of financial resources; On the other hand, consumers can enjoy the benefits of the automobile consumption in advance. Well-known auto financing companies in the world such as GM, Volkswagen, Toyota auto financing, etc., are profitable in the field of automotive finance and grew their own enterprises and made outstanding contribution in the promotion of the brand. In June 2008,the China Banking Regulatory Commission approved Chery Emblem Silver car finance to establish formally. This is the first independent brand of automobile financial company in China. Along with ascension of our country economy, the residents’ consumption demand for cars is growing, but because of the limitation of auto financing companies’asset scale and the financing channels, auto financing companies increasingly face with the bottleneck of financing methods and abilities. Asset securitization, as a financial innovation tool, widens the financing channel of auto financing companies and meets the capital requirements of business growing. On January 18,2008, Shanghai GM financial issued the first MAS products-"Tong Yuan period I". Subsequent years, Volkswagen auto finance, BMW automotive finance, Ford auto finance, Dongfeng Nissan auto finance and Toyota motor finance released car mortgage securitization products one after another. Among them, "Driver one" car mortgage securitization products of Volkswagen auto financing became the first wholly foreign-owned auto financing company to open up China’s ABS market, This is not only a reference for other foreign auto finance companies, but also provides a professional, meticulous securitization template to domestic automobile financial companies. It also makes the Volkswagen financial become one of the few auto financing companies which issued personal automobile mortgage securitizations.This paper takes the form of case study and introduces the Volkswagen financial (China) company’ basic situation and the main business. Through revealing operation process of securitization of credit assets, we expound two perspective of the ABS business, such as the external environment and endogenous development needs. And analysis business benefits from optimize asset structure, expand sales channels and expand financing channels. Reveals credit risk, liquidity risk, SPV established links risk and other major business risks. In summing up the positive significance of Volkswagen Finance to carry out securitization business.At the same time, pointed out the lack of structural design on "Driver one", such as that collateral brand is too concentrated and the smaller size of the pool of funds. We put forward some targeted suggestions.