A Study On Risk Management Of Infrastructure Income Rights Securitization

Asset securitization has been developing for 50 years in the United States.It is an important financial innovation in the capital markets of the United States.However,only in 2005 did it quietly rising in China and so far it is in full swing.The securitized products designed through a series of principles can realize the functions of low-cost financing,assets revitalization,and optimization of financial statements.At present,the problem of financing difficulty in the field of infrastructure construction is also an urgent problem to be solved in China.And on the basis of this,the infrastructure income right formed by the infrastructure is an important underlying asset of the asset of the income category and is provided with an effective channel for infrastructure construction by combining with assets securitization.The widespread application of asset securitization has provided many enterprises with a recipe for alleviating the problem of financing difficulties.However,the occurrence of ABS breach events on the Dacheng West Yellow River Bridge in 2016 also gave a serious warning to the brutal growth market.Based on this case,this paper studies the risk of infrastructure earnings rights securitization by using case analysis and literature review from the perspective of participants in asset securitization.The purpose of these studies is to find out and pay attention to the risks so as to optimize the market environment.Combining with some of the risk events that took place in China's asset securitization market,to analyze the risk points of default cases.It was found that there were mainly risks of basic assets and original rights holders,credit risk of guarantee institutions,risks of plan managers,liquidity risks,and risk of bankruptcy separation.Among them,the first three risk points mentioned above have become the main reasons for Dacheng West Yellow River Bridge asset securitization breach of contract.Specifically,it is the breakdown of cash flow from basic assets,the failure of credit enhancement measures,and the lack of capital supervision.In light of the above risk points,this paper proposes that should manage risks and reduce risks by carefully selecting basic assets,enhancing the overall level of plan managers,enhancing the sense of responsibility of original equity holders,fostering mature financing guarantee agencies,and opening up transaction markets.Finally,looking at the process of asset securitization of the entire infrastructure income right,this paper draws three conclusions.First of all,when the infrastructure income right is used for asset securitization,it is more susceptible to the operation of the original rights holders,which means that the original equity holders have little effect in supplementing their pledges to increase credit.And the risk of basic asset cash flow forecasting,improper management of plan managers,immature professional guarantee institutions,and poor market liquidity pose a number of challenges.Second,in view of the immaturity of the current professional guarantee agencies in China,the government should intensify efforts to cultivate professional guarantee agencies.Prior to this,the original rights holders should try their best to choose companies with strong strengths and big differences in their business operations as guarantee agencies.Finally,the fragmentation of China's asset securitization market,the lack of domestic taxation and accounting systems that are compatible with securitization businesses,and the lack of independent corporate status of SPVs for corporate asset securitization have become China's development of asset securitization.