The Research And Design Of Securitization Product In Coal Mining Rights

Asset Securitization has been widely used in financial innovation and development since it was put forward in 1970. More generalized asset securitization expands the scope of securitization onto physical assets, these developments to further improve the liquidity of corporate assets and reduce the company’s financing costs. In the current,coal demand and prices continued to slump, reducing corporate profits. The financing through traditional methods can not meet the coal enterprises’ funding requirements that can keep their capital liquidity and development. Therefore, this article introduces a new method of financing- coal mining right securitization methods to alleviate the plight of this financing. Firstly, the paper explores the mining rights to explore the necessity and feasibility of securitization on the basis of existing mining right securitization theory and the theory above. After that the paper analyses by real-world examples of specific mining right securitization process, and design the product by special asset management planOn the structure of the article: This paper describes the related theoretical basis of coal mining rights securities, including the mining right theory and the theory of securitization. The mining rights theory focuses on the relevant knowledge about mining rights, besides the article are talking about the value of coal mining rights from the degree of real option. Asset Securitization theory mainly elaborated the main process of asset securitization and classification, and the paper also analyzes the verification to asset securitization.Secondly, this paper present finances situation of China’s coal enterprises, as well as comparative advantage of asset securitization, further analysis of the implementation of coal mining right securitization necessity and feasibility in our country. Necessity mainly talked about the situation of financing, as well as securitization advantage over other financing methods. Feasibility mainly talked about that the mining rights is suitable for asset securitization and sharing the successful experiences about asset securitization.Thirdly, this paper analyzes the process of coal mining rights based on the value of the underlying asset evaluation detailed. Then, citing the example of coke prices, this paper builds the coal price model which based on the coal price follows jump- diffusion model. And this paper also uses MCMC method to estimate the parameters in the coal price model. After that, this article from the perspective of real options to estimate parameter and uses the Monte Carlo simulation method toevaluate the value of the coke mining right, and establishes the asset pool based on mining right evaluation value of coke.Finally, on the basis of the above research result, this paper citing many examples from actual life to quantitative analysis the value of mining right securitization, and then analyzing the cash flow and asset pool. After that, this paper using the special asset management plan to design the securities and further analysis of the mining right securitization of securities in the design of related problems, mainly includes the yield of special plan set, enhancement and the content of the trade structure. At the end of the article, this paper puts forward the constructive measures to ensure the coal mining right of further implementation.