Analysis On The Credit Risk Of Financial Leasing Asset Securitization

Financial leasing,as a new financial industry integrating financing,trade and technology,plays an important role in adjusting and optimizing industrial structure,enriching financing channels for small,medium and micro enterprises,stimulating effective social demand and optimizing financial organizational structure.However,Chinese financial leasing enterprises are generally facing the dilemma of single financing channel and the scale restrictions on capital.Asset securitization provides a new way of financing for these companies,and the demand for asset securitization by financial leasing companies is rapidly growing.However,under the background of the current uncertain economic development and stricter supervision in China,many credit risk events of financial leasing assets securitization products have erupted in recent years,which makes the management of credit risk of securitization of asset leasing assets a top priority.This paper first divides the sources of credit risk of securitization of financial leasing assets into two categories.The first major category is the credit risk derived from the underlying assets,which includes the underlying asset authenticity risk,the repeated mortgage risk and the quality risk;The second major category is the credit risk from participants.And the participants are tenant,original interest person,thirdparty intermediary organization.Then this article takes the “Lionbridge Asset Support Special Plan Series 5” as a case to analyze the credit risk and corresponding management measures of the case based on the source of credit risk.Through the analysis results,it can be seen that there are risks of repeated mortgage and excessive industry concentration in the basic assets of " Lionbridge Asset Support Special Plan Series 5";there is also a risk of overdue repayment in the lessee.As for the original equity,there are risks of capital confusion and bankruptcy caused by the bankruptcy of the originator.In addition,there are credit rating risks caused by malignant risk events of related credit rating agencies in third-party intermediary agencies.Next,this paper analyzes the credit risk management measures of "Lionbridge Asset Support Special Plan Series 5".The analysis reveals that the product has effectively controlled the credit risk of "Lionbridge Asset Support Special Plan Series 5" by means of highly dispersed lessee,appropriate credit enhancement means and standard terms.These measures not only transfer the risks and profits of underlying assets of the product from Lionbridge Financing Leasing(China)Co.,Ltd.to investors,but also avoid the outbreak of credit risk events.Finally,based on the results of both theoretical part and case analysis part,this paper gives the recommendations for the credit risk management of financial leasing assets securitization.This paper believes that: to manage the credit risk originated from the basic asset pool,the pooled assets should be strictly selected,and the credit risk management should be carried out with consideration of the characteristics of the underlying assets.Also,the authenticity and collateralization status of the underlying assets should be strictly checked;to control the credit risk originated from each related particicpant,we sugguest that the original equity holder enhance the post-rental management ability,a firewall for bankruptcy isolation be established and the independence of the underlying assets be assured,an intermediary third-party mutual supervision mechanism be established,and a finer financial leasing asset securitization product service system be developed.