| The business model of micro-credit companies has developed for over 20 years,since it was introduced into China in 1994.The motivation of traditional financial institutions to develop micro-credit loans is not strong,because the amount of micro-credit loans is small,and the cost of staff salaries and network establishment is relatively high.However,this situation was tremendous changed with the development of Internet finance.From the establishment of the first domestic P2P lending platform in 2007 to the end of 2017,the loan balance of P2P industry in China reached 1.2 trillion yuan.Even though the development of internet finance companies is extremely fast,it still faces many risks,and capital is the most important bottleneck.In this context,asset securitization has become a new attempt by the Internet finance company to solve the funding problem and revitalize existing assets for the company.In June 2016,CICC-Yiren JIngyingdai ABS was formally listed on the Shenzhen Stock Exchange.It is Yixin Group's first ABS product listed on the Shenzhen Stock Exchange.This case can provide reference for more internet lending companies to develop ABS.Based on the review of both domestic and foreign literature,this paper introduces the relevant theory of ABS,lists the application cases of asset securitization in the field of Internet finance,analyzes the status and competition of the internet micro-credit industry in China.Taking the CICC-Yiren Jingyingdai ABS as entry point,this paper analyzes the situation,opportunities and restrictions of micro-credit companies in developing ABS.By the case study method,this paper analyzes the CICC-Yiren Jingyingdai ABS,and finds that the credit risk of the underlying assets is small,the cash flow repayment mechanism and the bankruptcy isolation mechanism are designed properly,and the special plan uses many enhancement measures,such as securities grading,excess spreads,and credit triggering mechanisms,to protect the interests of investors.The risk control and loan approval system for the basic asset pool is complete,and the rate of return is higher than that of corporate bonds of the same risk level.The cash flow can cover the payment of principal and interest of priority securities,and the cover ratio is over 1.75.However,there are some deficiencies in this case.For example,the original equity holders,asset service agencies and margin providers are affiliates.Also,the proportion of subordinated securities is too high,reaching 100%.The time for approval is too long,resulting in less efficient financing.In response to these problems and according to the status of the development of asset securitization in the online loan industry,the author explores models for the future asset securitization of online loan platforms,and think that online loan platforms can try to cooperate with asset management companies to expand the scope of investors.The paper also suggests to use dynamic asset pooling and recurring purchase methods to solve the problem of maturity mismatch of basic assets and asset-backed securities.At the same time,in order to improve the financing efficiency,it is recommended that the original equity person adopt the normal distribution.Finally,it is proposed to improve the personal credit assessment system and improve the secondary market liquidity of asset securitization,such as allowing plan managers to buy back,market,etc. |
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