The Application Research On Asset Securitization About Financial Leasing

In1981, the leasing industry began to rise, and until recent years the industry had through a rapid development. According to the industry statistics, in2007, the number of leasing companies was58and the size of lease contract was27billion, at the end of June2013, the number increased to669and the size of lease was up to1900billion. It is obviously that the leasing business scale had experienced explosive growth. Depending on the regulatory body, our leasing companies can be divided into financial leasing companies and financial leasing companies. At the end of June2013, the size of lease contract was740billion which accounted for38.9%of the market shares as the number of financial leasing companies was only21. However, two key factors had limited the strong development:capital and leverage.At the point, we will consider a new financial instrument which is called asset securitization. On the one hand, the leasing company will sell the leasing assets to SPV, which make the assets out of the balance sheet become true. On the other hand, the sales of asset securitization products are a way to raise funds for leasing companies. Therefore asset securitization is an important tool for financial leasing companies to achieve breakthrough of business bottleneck for future development.This paper is divided into four parts:The first part introduces the basic theory of asset securitization. The second part discusses the leasing asset securitization. The third part illustrates the operation of asset securitization, which contains the design of the project and the analysis of the risk. The forth part is mainly introduces the pricing of asset securitization, which includes Issue Pricing and Transaction Price. To introduce the Issue Pricing, we have used a case that has detailed data. And this paper illustrates four methods for Transaction Price:Static Cash Flow Discount method, Option-Adjusted Spread method, Mond Carlo Simulation method and Binary tree of Interest method.This paper has a detailed analysis of financial leasing asset securitization in the first time, which has a significant reference for the actual operation.