Research On Asset Securitization Risks Of Infrastructure Income Right

Infrastructure construction usually has a long investment cycle and a long operating cycle.Due to its large initial investment but slower return,its funds often come from financial allocations or local government financing.Traditional financing methods often fail to solve the problem of capital turnover,and infrastructure construction through asset securitization can effectively enhance asset liquidity,revitalize stocks and assets,and improve capital operation efficiency.However,as of the end of 18,a total of 42 asset securitization products were downgraded.Among them,Dacheng West Yellow River Bridge ABS Peace Silver Kaidi Internet toll right ABS(Phase Ⅱ)defaulted on the principal,and the risk of asset securitization gradually emerged.This paper takes KD company’s asset securitization default event as the case analysis object.From the existing research and related theories,it analyzes the three aspects of the underlying asset-related risk,the transaction structure design risk and the related participant risk,and analyzes it with the case.Put forward corresponding suggestions,hoping to improve the awareness of ABS product buyers on their risks.The research that distinguishes the risk of securitization of past assets is limited to the case of ABS default incident of Dacheng West Yellow River Bridge.This paper will dig deeper into the risk of KD company’s asset securitization default event,and combine the other cases of asset securitization cases downgraded.The risks of securitization of facility income rights assets are classified and summarized,and the corresponding risk causes and countermeasures are analyzed.In detail,this paper first analyzes the characteristics and causes of asset securitization risk of infrastructure income rights.Secondly,it introduces the issue background and product status of KD company’s asset securitization products;then predicts the rationality from the operating environment and cash flow.And the three parts of the effectiveness of the credit enhancement mechanism to analyze the core risks of the securitization project,and to analyze the risk of KD’s asset securitization product default event.Finally,combined with the case,the corresponding countermeasures and suggestions for the risks related to the securitization of income-based assets are proposed.This paper finds that on the one hand,because the stability of infrastructure cash flow is difficult to control,there is a big risk in predicting the rationality of cash flow.There is a higher demand for the professionalism and professional ethics of accountants and appraisers,and it is necessary to strengthen the supervision of the participants in asset securitization products.On the other hand,for power supply,heating,water supply and other basic assets that require more operating costs to support the infrastructure to generate cash flow,when issuing asset securitization products,the predicted cash flow generated by the infrastructure must cover the operating costs and the principal and interest.The main innovations of this paper are as follows:First,this paper analyzes the latest cases of default.The case itself is the power charging right,which is quite different from the road and bridge charging right.The reasons for the default are not the same,from which new risk points can be found.According to the corresponding suggestions,the gaps in the risk research of non-road bridge infrastructure charging assets securitization are filled to a certain extent,which is conducive to enrich the risk of asset securitization.Second,this paper combines the first judicial in the securitization market.The institution’s judgment on the independence of the underlying assets and the original equity has further analyzed the bankruptcy isolation design of one of the core characteristics of asset securitization.