Research Of Operation On The Leasing-backed Securitization In China

Financial leasing industry in China started not too long, but recently it has been maintaining a high rapid developing momentum, as the accelerated transformation of economic structure and the further deepening of financial reform. According to the present conditions of currency fond on the financing leasing industry, the most of its funding sources come from bank deposits and shareholder equity capital, This short-term assets cannot match the long time huge capital needs of extensive leasing business, especially for sale-Lease Back. This paper aims to use asset—backed securitization(ABS) as a new financial structural tool to help broaden the financing channels for leasing companies.The basic idea of this paper is as follows: First we make a summary of the theory and literature on financing leasing and Leasing-Backed Securitization(LBS); secondly, we analyzes the promoting factor of the leased asset securitization in the view of policy and market; Based on the assets portfolio theory, the third and fourth part of this paper focus on combing and analysis four points of some case we selected, which points includes why to issue it, how much the cost is, what is the characteristics of the trading pattern, how to prevent risks and determine the price; Lastly, we draw a conclusion on the general characteristics of the leased asset securitization in our country and make some suggestions on policy.The innovation point of this essay is to study the case of “LBS of Guangfa and Nanfang”, which is first ABS program to use after-sales leaseback incremental assets, The author adopted qualitative and quantitative analysis methods. Analyzing the design of pattern and the prevention of risk on the special plan by qualitative methods, we find the special plan has its own distinctive characteristics on the underlying assets, products design,,credit promotion measures and risk control system. selecting incrementally lease debt as the foundation assets, property clear, to ensure real transfer; it not only improve product credit rating, but also guard well against the risk of default of the underlying asset sand the lessee concentration risk by providing measures to increase trust deposit accounts and major shareholders guarantee. this paper also attempts to use binomial options pricing model and the discounted cash flow model as the quantitative methods to pricing the product. we found that China's leasing asset securitization has characteristics: the underlying assets own high concentration; lease contains a security interest in the assets of the subsidiary; securitization influenced by moral hazard. The LBS also has the shortcomings in its leasehold rights of ownership, increase trust models and market liquidity. We hope our study can help improve and innovation of the leased asset securitization products.This paper focus on the operation of LBS. Analyzing the key link of the underlying assets, deal structure, and credit promotion measures, we find the special plan has its own distinctive characteristics: basic asset leasing, large scale and high quality; use the rights and interests of sale and leaseback asset securitization transaction structure to achieve risk isolation of basic assets and other assets form many aspects, on which we make some suggestions on policy.