On Risks And Countermeasures Of Securitization Of Income Right Assets

With the sustained and rapid growth of China's economy,enterprises need to obtain funds to support the production,operation and investment activities through financing means.Asset securitization came into being.After more than ten years of exploration,the legal systems and supervision methods related to asset securitization in China have become more and more perfect,and asset securitization products have also been greatly developed.Although asset securitization has always been regarded as a less risky financing method,the recent ABS default events in the capital market have occurred frequently,which not only adversely affects the income of the enterprise,but also has a serious negative impact to the entire asset securitization market.In order to understand the development of income rights securitization and related risks in more detail,this paper will take Kaidi's second ABS as a case study.Started from relevant theoretical basis of income rights securitization,this paper introduces Kaidi's second ABS special plan from the important participants,transaction structure and credit enhancement measures.It is expected that income rights securities can be implemented for enterprises.It provides some suggestions to prevent possible risks in the future,while promoting the faster development of income rights securitization in China.Based on the above research purposes,this paper mainly takes Kaidi's second ABS as an example.The structural framework of this paper is divided into the following sections:Firstly,the first chapter mainly expounds the background of asset securitization and the current situation of default of asset securitization products in China,and expounds the meaning of the article from the theoretical and practical significance.The second chapter is theoretical part of this article,which is the theoretical framework of the whole article.Therefore,starting from the four stages of asset securitization development,thecharacteristics and classification of asset securitization are explained in detail.Secondly,the income right is introduced.The risk of asset-based securitization products,and finally the measures to deal with asset securitization;The third chapter is the main part of the whole case analysis,mainly introduces the Kaidi's second ABS from structure,cash flow forecasting and credit enhancement measures.The fourth part mainly analyzes the risks in the second phase of the Kaidi's second ABS special plan.According to the analysis,the main sources of risk can be divided into three aspects: First,the risk of cash flow of the basic assets is mainly reflected in the significant decline in the cash flow,the excessive frequency of the collection and distribution of the cash flow,resulting in the large amount of funds being locked in the special accounts;The second from the original owner and the difference payment promiser;The last is less effect of credit enhancement measures.In response to the above risks in Kaidi's second ABS special plan,the following suggestions are proposed: improve the collection and distribution frequency of the basic asset cash flow;forecast the cash flow carefully;improve operational capability of enterprises;hire an independent party to act as a differential payment promiser;set up an effective resolution mechanism and develop CDS products.With the accelerating development of income rights securitization in China,more and more asset securitization products will enter the securities market.Although many risks are not exposed at present,they are found through the analysis of products that have already defaulted.Only summarize lessons from these products can promote China's future income rights securitization market to a healthier direction.