Research On The Implementation Effect Of Asset Securitization Accounting Based On Credit Spreads Analysis

In the1970s,asset securitization originated form American. As a great financialinnovation,it become the third major financing instrument in global capital marketwith Debt financing, and equity financing. Experience in the United States and otherdeveloped market economies suggests that impact of asset securitization accountingcan not be underestimated. In China, asset securitization practice is in the stage ofvigorous development. However, although the country accounting for assetsecuritization introduced some corresponding regulations of accounting for assetsecuritization, basically they were introduced from foreign countries.Therefore, theresearch of our current existing asset securitization accounting is significant.The research on the implementation effect of Asset Securitization Accounting isbased on credit spreads analysis. In the part of theoretical analysis, the authoroverview asset securitization business,introduce two major issues of assetsecuritization accounting,pointing out that "true sale" and "do not merge SPEfinancial statements” is the basis of the "risk isolation" and "off-balance sheetfinancing".the author also introduced the basic principles of asset securitization andcredit spreads theory, pointing out that we can measure the implementation effect bythe correlation between credit spreads of Asset-Backed Bonds and the financialposition of sponsors Accounting. In the apart of empirical research, the thesis test thecorrelation between credit spreads of asset-backed bonds and the financial position ofpromoters from the perspective of credit asset securitization which were required toachieve risk isolation and "off-balance sheet financing" and less standardizedenterprise asset securitization.Empirical results show that both credit assetsecuritization and less standardized enterprise asset securitization did not achieve theisolation of risk.the function of Asset securitization accounting in monitoring assetsecuritization business and preventing the risk of the securitized defects,failing toguide our securitization business assets. Finally, the thesis put forwardrecommendations based on theoretical and empirical analysis.