Research On Risk Management Of Asset Securitization Business Of CA Trust Company

Since 1970s, as the benchmark for innovative projects in financial markets, Asset Securitization has always been the focus of attention. The most distinctive feature of asset securitization is to apply Special Purpose Vehicle (SPV for short) in the trading structure. In China, the vehicle adopts the form of Special Purpose Trust (SPV for short).This paper aims at providing advices for CA trust company to improve the risk management of asset securitization. Based on the background of CA trust company, through the research of asset securitization business conducted by the company, the paper will figure out problems existing in risk management, analyze the related causes and finally put forward solutions for implementation.This paper consists of five parts. The first part is the introduction and main contents include topic selection background, research methods and ideas, research contents, contribution as well as the whole struction of the paper. The second part is the related reference literature reviews of the paper. In the second part, starting with the discourse of basic theories of asset securitization, the paper respectively conducts research into the definition, principles, classification, participating subjects, general operation procedures and other aspects of asset securitization, and also lists ten main risks existing in the business of asset securitization. The third part introduces the basic conditions of CA trust company. Through the analysis of the current development condition of asset securitization of the company, the paper not only figures out the existing risks, but also studies problems of CA trust company in risk management and the related reasons for the problems. The fourth part puts forward solutions to the problems of risk management in the business of asset securitization for CA trust company by applying theories of comprehensive risk management framework. The fifth part is about implementation measures. In the last part, the solutions put forward in the paper are applied in the business of asset securitization of CA trust company to implement comprehensive risk management, which improves the risk management of asset securitization of CA trust company.This paper strives to provide feasible suggestions for asset backed securitization business conducted by CA trust company, after analyzing and studying the existing risks, the paper also strives to find, analyze and solve the problems in risk management with the hope of contributing some management inspiration to the development of asset securitization business in trust industry.