Case Study On “NY2017-1” Credit Asset Securitization Product

In western developed countries,credit asset securitization products have already been a fairly mature product and play a vital role.However,it was not until April 2005 that the pilot work on credit asset securitization in China was initiated.When China's credit asset securitization market has not yet matured,the global financial crisis in 2008 caused it to stagnate for some time.The door to the pilot work was reopened in May 2012.Beginning in 2016,China's financial market has undergone a storm of “de-leveraging and strict control of risks”.Strengthening financial supervision has become the main theme of the financial industry and the entire social economic and financial system,creating opportunities for asset securitization to accelerate its development.With the official release of the “New Asset Management Regulations”,the model of credit asset securitization is also facing new changes.In this context,this paper selects “NY2017-1” credit asset securitization product as the research object.Firstly,it briefly introduces the background of A Bank which is the product's sponsoring institution and the overall situation of the credit asset securitization of Bank A,and explains the reasons for choosing the case analysis of the product.Afterwards,the basic situation of the product and the cause of action were sorted out.Then,in the case analysis part,it focuses on the analysis of asset pool screening,transaction structure design and credit enhancement,and analyzes the impact of the product issuance on the financial effect of the sponsoring institution A Bank.The study found that “NY2017-1” adopts the method of reversed construction period,which greatly shortens the project time and improves the overall profit of the project;improves the controllability of the project by rationally formulating the asset pool screening criteria;the liquidity greatly improved the sales of the project by letting the underlying assets appear on the table;establishing risk isolation with the issuing institution A Bank,which greatly enhanced the safety of the A Bank itself.