A Research On Financial Leasing Asset Securitization Products' Issuance Premium

In recent years,the financial leasing business has developed rapidly.While the financial leasing company is constantly expanding its business scale,it faces the problem of “funding difficulties and financing expensive”.As a result,the asset securitization business based on leased assets is ushered in development opportunities,it not only can provide financing sources for financial leasing companies,but also can bring benefits to revitalize existing corporate assets,optimize asset and liability structure,and enrich the securities varieties in China's securities market.Based on the design of asset securitization products,this paper studies the choice of credit enhancement measures in the design of financial leasing assets,the characteristics of underlying assets and the impact of rating agencies' credit ratings on their issuance spreads.This paper firstly reviews the the impact of asset securitization product issuance pricing methods,the methods of credit enhancement,the characteristics of underlying assets and credit rating on financing costs through literature documents.Secondly,it studies the practice of securitization of financial leasing assets in China.Refining the three elements that need to be focused on in product design: credit enhancement measures,underlying assets,credit rating,and combining financial asymmetry theory,market signal theory and other financial classics to set research hypotheses and empirical models.In the empirical analysis,when controlling other variables,the paper draws the following conclusions: Although credit enhancement measures can improve the success rate of asset-backed securities,they have no effect in reducing the cost of issuance,but rather due to the serious asymmetry of information,investors will require a higher risk premium as compensation;the underlying assets as the credit subject of asset securitization,its individual characteristics affect the issuance cost of asset-backed securities by affecting the stability of the future cash flow of the asset pool,among which the lessee with higher concentration,cause greater rental balance receivable,which means bring the greater default risk of the underlying assets,the greater the spread of the asset-backed securities,and the greater the priority principal protection ratio,indicating that the cash flow of the asset pool is sufficient.It can effectively reduce the issuance cost of securities;as a market signal,credit rating can provide an important reference for investors to make investment decisions.The higher the credit rating,the lower the issuance cost of asset-backed securities.In addition,the author selects different comparison benchmarks in the definition of explanatory variables.and compared and analyzed the influence of different explanatory variables on issuance spread in the whole process,and strives to make the empirical results more accurate.At the same time,in order to verify the rationality of model and variable selection and the unbiasedness of sample selection,the robustness test of the main regression equation is carried out by replacing variables,assignment method and heckman two stages,and the regression results are basically consistent with the original results.In view of the above research,the author puts forward the following suggestions: For asset-backed securities promoters,they should cautiously use credit enhancement measures when conducting securitization financing;For the program manager,select the underlying assets reasonably and pay attention to the protection of the rights of the priority investors in the structural design;for rating agencies,adhere to the principle of independence,to provide investors with objective and fair market signals;for regulators,strengthen supervision,improve information disclosure mechanisms,introduce dual rating models,maintain market justice and order,and cultivate institutions that are recognized by the market and increase institutional investors with strong risk identification capabilities.