Research On The Pricing Of Asset-backed Securitization With Targeted Poverty Alleviation

Since then the asset-backed securitization has been invented,it plays an important role in financial market.In China,because of the financial crisis in 2008,the asset-backed securitization was shut down completely until 2012,when the asset-backed securitization was restarted and has been developed rapidly in recent years.In this paper,the first assetbacked securitization with targeted poverty alleviation,Guojin-Langzhong Gas Assetbacked Project(hereinafter referred to as Langzhong Gas Project),is taken as the research project.Three models,namely static cash flow discount model,static spread model and option adjustment spread model,are used to analyze this project,aimed at the pricing of this project.By comparing the result of three models,this paper tries to find out the suitable pricing model of asset-backed securitization with targeted poverty alleviation and make some suggestions to the future of asset-backed securitization with targeted poverty alleviation.Little of the existing research combined targeted poverty alleviation with securitization.This paper takes Langzhong Gas Project as an example to study the pricing of asset-backed securitization with targeted poverty alleviation,which will enrich the researches which are related to asset-backed securitization and targeted poverty alleviation.With the rapid development of asset-backed securitization and the advancing of the national strategy of targeted poverty alleviation,this paper,for one thing,is conducive to speeding up the integration of asset-backed securitization and targeted poverty alleviation,for another thing,is of great significance to the transformation of securities business and the fulfillment of social responsibility.This paper reviews the modes and the characteristics of asset-backed securitization in China,makes a specific introduction of asset-backed securitization with targeted poverty alleviation and a briefly introduction of the theory of asset-backed securitization pricing models.Based on an introduction of the situation of Langzhong Gas Project,this paper constructs the pricing models of Langzhong Gas Project,including three models: static cash flow discount model,static spread model and option adjustment spread model.Meanwhile,it makes a forecast to the basic asset of the Langzhong Gas Project in two ways.One is a direct way and another is an indirect way.The fifth part is to analyze the pricing of Langzhong Gas Project by using the pricing model established above,and compare the results of the three models.Through a pricing analysis of Langzhong Gas Project,this paper draws some conclusions and suggestions.The main conclusions are as follows: firstly,option-adjusted spreads model is more suitable for the first asset-backed securitization with targeted poverty alleviation;secondly,summarized three characters of asset-backed securitization with targeted poverty alleviation;thirdly,high-quality basic asset is an important factor for the successful issuance of the first asset-backed securitization with targeted poverty alleviation;lastly,the successful issuance of Langzhong Gas Project has important reference significance to the investment decision of social capital,to the development of asset-backed securitization and to the transformation of financial institutions.In view of the conclusion,this paper puts forward the following suggestions: first,we should continue to strengthen cross-border cooperation in this business;second,we should found more ways to connect the targeted poverty alleviation and asset-backed securitization;third,we should select highquality basic assets;last,we should strengthen the study of market environment.