Case Study Of "Jianxin Phase Ⅱ" NPLs

At present,China’s economic development is facing a "growth dips" and "structural changes"and "policy digestion period three superimposed state,the economic operation of the uncertainty of the non-performing loans of commercial banks in China the scale continued to rise,the high rate of non-performing loans this situation will continue.For commercial banks,bad loans are one of the key factors that affect their reform and development..In many business loans,personal housing mortgage business gradually become one of the main business of the commercial banks,however,in the face of the policy regulation of the real estate market more round,the risk of personal housing mortgage loans are also increasing.This paper studies the case of "Xin Jian two" non-performing assets backed securities,is China’s first single to personal housing mortgage loans is based on non-performing assets of the product,through in-depth study of the non-performing assets of individual housing mortgage loans,to upgrade the status of the business assets to provide a reference to more asset securitization the way to deal with the retail side of personal housing mortgage loans.The article explores the core of the NPAS based on the restriction of the three party’s operation constraint condition of the bank,the special purpose subject and the investor.Through the analysis of three party constraints,using literature research and mathematical statistics and other methods of Jian Xin two NPL backed securities in the case of in-depth analysis,draw the following conclusions(1)the issuance of NPL backed securities in the short term can not significantly improve the sponsors of the regulatory index and market value,influence the enthusiasm of the sponsors.(2)research methods through the SPV mechanism of the recovery of cash and cash payment rates as the constraint conditions,that CCB Jianxin two period SPV institutions trust is a certain income.(3)the NPL backed securities is risk neutral return products,the priority of investment returns and other fixed income convergence.But the inferior level due to the difficulty of pricing is difficult to judge the level of income to be recognized by investors and understanding,but also need more time.Through case analysis,get the following enlightenment:(1)the NPL backed securities usually belong to the policy of financial products,whether investors or sponsors of the income level is not high,so a good development cannot do without the promotion of the government.(2)adhere to the product risk retention mechanism,more help the incentive mechanism related due diligence,perfect the market.(3)to activate the two level of market liquidity,reduce the investment threshold,training a group of investors.(4)strengthening the investment protection measures,improve the investment.