The Research On The Prepayment Behavior Of Mortgage-Backed Securitization In China

With the steady growth of our economy, the gradually opening of the financial sector,and the government has adopted a series of macro financial policy to deal with the overheating of he national economy. The banking industry in China is facing the huge challenge.Because the long-term mismatch problems of long-term assets and short-term liabilities within the banking sector,its risk is quite great, shortage of liquidity risks emerge in endlessly.Just because there is the risk that our country banking industry has to make innovation.Foreign Banks also face with similar risks, of course, also adopted a series of measures to evade.There are a lot of experience is worth us to learn, and the project of mortgage-backed securitization is just one,the banking industry in China can use the project to avoid risk,and develop ourselves.But mortgage-backed securitization is a double-edged sword,can not only bring to Chinese banking activity, but can cause risk,also.Prepayment risk is one of them.Prepayment behavior is in view of mortgage-backed securitization itself,but after the securitization,the risk will be for the "leverage effect" to infinite amplification,so the behavior is one of the considered factors in the process of mortgage-backed securitization.The article will first systematically introduce the basic situation of mortgage-backed securitization and its prepayment behavior,including theoretical basis,function&operation mechanism and the cause of the prepayment behavior, and the dilemma of prepayment rate’s measure,then focus on the study of prepayment behavior of mortgage-backed securitization,including the influence and influence mechanism to the originator,the special purpose institution and investors.In addition,analysis and verify the main factors influencing the prepayment behavior from both theoretical and empirical point of view.Finally, on the basis of the analysis of the experience of the domestic and overseas preventive measures of the prepayment behavior of mortgage-backed securitization, put forward some countermeasures and suggestions against the behavior.Through research and analysis,the prepayment behavior of mortgage-backed securitization will have a significant impact on the originator,special purpose vehicle and investors.And income,interest rates and house prices also have an important effect on the prepayment rate.Even though we cannot completely limited the change of income,interest rates and house price,but still can implement a series of countermeasures to deal with prepayment risk in a big financial environment.