| Mortgage-backed securitization (MBS) refers to something that the financial institutions themselves have or actual control the the housing mortgage loan, which have poor liquidity but in the future it can bring a steady cash flow, by selecting together restructuring to mortgage portfolios and translating to be the process of financial products sales and circulation in the capital market. Mortgage-backed securitization is the very important part of asset securitization. The mortgage-backed securitization produced in the 70 s in the United States, and the financial innovation has achieved very good results, and it became the earliest form of asset securitization. Since the rise of mortgage-backed securitization has a great effect on the prosperity of the market, it promoted the prosperity of the real estate industry and financial industry. It is one of the most successful financial innovation in the 20th century. The financial innovation expanse to other assets field, and assets securitization contains other consumer loans. Because of the success of mortgage-backed securitization in the United States, Britain,European countries, and some Asian countries began the practice of the securitization of housing mortgage loan then in recent years. The promoting mortgage-backed securitization has its special market factors in United States, such as interest rate, exchange rate fluctuations, the technology supporting, and the Basel capital adequacy requirements. These factors are the issues that the Chinese financial market facing now. Since after the housing reform in our country, the real estate industry rapid development, people’s housing demand has been very strong. So far, the number of housing loans has reached 16 trillion in China. To commercial banks these huge loans has became great challenges for daily asset management. This part of the credit assets can be securitized, make the liquidity of these loans increase. From a macro perspective, the securitization of housing mortgage loan is conducive to the healthy development of capital market and real estate market in our country. To the capital market, the mortgage-backed securitization can make the type of securities enriched, and make the financial products in the market enriched,the diversification of investors demand be satisfied; To the real estate market, mortgage-backed securitization has increased the financing channels, and reduces the financing pressure of real estate enterprises. China has tried the securitization of housing mortgage loan for the first time in 2005. However, with the outbreak of the subprime crisis,the attempt of this activity was suspended. The outbreak of the subprime crisis let people see the huge risks hiding behind the financial innovation. Studying these problems of mortgage-backed securitization has important significance for China steady development. This article has five parts to study the problem of mortgage-backed securitization in our country. This article studies the problem of housing mortgage-backed securitization of our country in five parts. In the first part of the paper, it introduces the mortgage-backed securitization theory knowledge, including the securitization transaction mechanism of participants and operation process. The second part of the paper analyses necessity and feasibility of developing mortgage-backed securitization in China, starting from the concrete situation of our country to illustrate the significance of housing loan securitization in our country, and we have the right environment to development the h mortgage-backed securitization in our country. The third part discuss one of the main risks in securitization from a macro perspective, and that is credit risk which could lead crisis.So I choose this one as the research object, and this part uses the "jianyuan 2007-1" data which is the earliest asset-backed securities in our country.The fourth part studies prepayment risk and credit risk from the perspective of the borrowers. The study is from the micro level, and also uses "jianyuan 2007-1" data as support. The fifth part is based on results of the empirical research of the risk problem. According to the research results, this paper provides management advice in the process of mortgage-backed securitization to avoid risks. |
