Case Study On BYD New Energy Car Rental Asset Securitization

As a new type of financing industry in China,the financial leasing industry has gradually matured after more than 20 years of rapid development,providing a new solution to the problem of financing difficulties for SMEs.Due to the capital intensiveness of the financial leasing industry,rapid business growth and strict supervision,many financing leasing companies have difficulty in financing themselves.Due to the capital intensiveness of the financial leasing industry,rapid business growth and strict supervision,many financing leasing companies have difficulty in financing themselves.Under the background of China’s emphasis on developing the real economy,encouraging domestic advanced manufacturing enterprises to go abroad,and serving the “Belt and Road”,asset securitization can solve the problem of lack of funds in the financial leasing industry and promote the development of the financial leasing industry.Compared with traditional bank loan financing,asset securitization has the advantages of low threshold,low cost and optimization of corporate financial statements.The unique cash flow of the lease debt is stable,the single amount is high,and the number of times is very low.It is in line with the requirements of the basic assets in the asset securitization asset pool,and has the advantage of natural securitization.On the other hand,the country is actively promoting the adjustment of energy structure.The development of new energy vehicles is very rapid,and the state’s policy orientation towards new energy green industries is also very obvious.Therefore,under the background of the financial market vigorously promoting asset securitization products,the country actively promoting the development of the financial leasing industry and the new energy industry,the financing leasing green asset securitization has great development potential and research significance.After summarizing the research status and achievements of domestic and foreign scholars,this paper combines the theory of leasing asset securitization with actual cases,and analyzes the application premise of Tianfeng Securities-BYD New Energy Car Rental Green Asset Support Special Plan.The investment and financing needs,market environment and national policies of enterprises analyzed the motivation of BYD Leasing Company to implement the securitization of financial leasing assets.Inthe case study,the basic implementation of the asset support special plan was first reviewed,including the special plan participating institutions,product size structure,transaction structure,selection and composition of basic assets,credit enhancement design and fundraising results.Secondly,it analyzes the collection and distribution of special program cash flow,and predicts the future cash flow based on the lease contract loss rate,prepayment rate and interest rate,and measures the stability of cash flow from the perspective of the original beneficiary,repurchase obligor and debtor.On this basis,it analyzes the risks faced in the implementation of the whole case from the perspective of basic assets,asset-backed securities and special program management,and corresponding risk prevention measures are proposed for their risks.Finally,based on the promotion of China’s new energy lease asset securitization development,it summarizes the credit enhancement methods and stable cash flow in the process of securitization,and points out theother issues that need to be improved including the legal subject status,product liquidity and concentration of basic assets.