A Case Study Of Jointown Trust-type Asset-backed Notes

Corporate financing has always been an important factor affecting the development of enterprises.Appropriate financing methods can smoothly raise funds for enterprises and save financing costs.As a kind of financing method different from equity financing and debt financing,asset securitization has received extensive attention.Accounts receivable is a common basic asset for enterprise asset securitization.Accounts securitization can not only help enterprises to lower the cost of obtaining funds also has the effect of revitalizing the company's stock assets and improving the financial structure.In the case of many accounts receivable securitization in the market,Jointown securitized accounts receivable by initiating trust asset-backed notes.This paper first sorts out the background of this case,and then obtains Jointown's motivation for the securitization of accounts receivable in later analysis.;then explained the process of issuing asset-backed notes,including the participating entities,basic assets,transaction structure,etc.,and sorted out the results of the issuance.Then,this paper focuses on the main links exposed during the existence of the Jointown Assets Note: the selection of the initial base assets,the cash flow back of the basic assets,and the cyclic purchase process.Among them,the analysis of the initial base asset concentration degree shows that the concentration of indicators such as the settlement period of the pooled assets is relatively high,which may result in less than expected return of the underlying asset pool;analysis of the cash flow of the underlying assets,and the accounts receivable are found.There are different levels of default,and based on the simulation of three cash flow default rates,the amount of funds that can ultimately be generated by the asset pool is obtained.It is found that the sub-investors' income is relatively high at low default rates;Analysis shows that the quality and amount of the underlying assets in the cycle purchase have a very direct impact on the amount of recurring purchases.Then,this paper analyzed the frequency of cyclic purchase and financing effect,and finds that different frequencies will produce different effects.After that,this paper analyzes the main problems and causes in the process of securitization of accounts receivable,and obtains the enlightenment on how to choose the basic assets in the process of asset support ticket financing,how to use the cyclical purchase,and control the risk of basic assets,and finally return to corporate financing.The theme is to advise the pharmaceutical circulation enterprises on the securitization of accounts receivable.The sponsoring institution should subscribe for some or all of its own bills when the conditions are right,and use the low default rate advantage to reduce its own financing costs.Secondly,the quality of accounts receivable is the soul of accounts receivable securitization,if there is no high-quality accounts receivable,the result of securitization will not be very good.Enterprises should establish a debtor credit management system to strengthen the quality management of accounts receivable.At the same time,strict asset pooling standards should be set in the process of securitization of accounts receivable to deal with the risk of default events.In the end,the design of the cyclical purchase structure should not only refer to the settlement period of accounts receivable,but also flexibly operate according to the capital needs of enterprises,so that the financing instrument of securitization of accounts receivable will be better.This paper analyzes the continuous data generated during the existence of securities,hoping to get accurate conclusions to provide reference for related enterprise asset securitization,but limited by the author's analysis level,failed to establish a suitable cash flow model to measure the cost and benefits of receivables securitization.