On The Bankruptcy Isolation Of ABS

At present,the overall supervision of the direct financing ways in the financial market has become stricter.While the equity business of enterprises(including initial public offerings and secondary public offerings)is accelerating,the regulatory authorities are also paying more attention to the company’s business capabilities and raising the audit requirements.After the booming years,the bond market’s growth rate slowed down and many cases of default happened.As of the end of 2018,the number of bonds that had defaulted during the year had been 120,and the total amount was nearly 120 billion yuan.Not only did the number of bond defaults rise,but the number of bonds that were issued or had been approved but failed to issue was around 700.At the same time,the implementation of the new regulations on capital management caused stricter requirements for the capital investment of major financial institutions.The funds in the market are tightening,and the difficulty of financing ordinary bonds is increasing.On the other hand,the number and amount of asset-backed securities on the market are rising rapidly.From 2015 to 2017,the amount of asset-backed securities issued was 0.61 trillion yuan,0.92 trillion yuan and 1.54 trillion yuan respectively.During 2018,the total assets securitization products in 2018 had been issued 2.01 trillion yuan.Compared with traditional bond products,asset securitization is mainly based on its basic assets that can generate cash flow in the future.The redemption is more supportive.If the underlying assets can be reasonably divided,the bank can also be used to achieve bankruptcy isolation.Recently,it has received very much favor from investors and has become one of the important direct financing channels.The most important feature of bankruptcy segregation is asset-backed securities.The effect of bankruptcy segregation is studied.The problem of bankruptcy segregation system and the solution are proposed to help improve capital market,help broaden direct financing channels,and promote the function of financial services real economy.China’s asset securitization products can be roughly divided into two categories according to the basic assets,one is the creditor category,and the other is the operating income right category,in which the creditor class can be realized,thus achieving the purpose of bankruptcy isolation and isolation of risks.In order to deeply study the effect of bankruptcy isolation of credit asset securitization products,this paper selects the second phase of non-performing asset-backed securities of Gongyuan 2017 as the research object,and deeply studies the design terms,effects,advantages and disadvantages of the product,in order to evaluate asset securitization.The bankruptcy isolation effect of the product,study its limitations,and make recommendations for reference.This paper takes literature research method,comparative analysis method,case analysis method and the research method,and selects ICBC’s second phase of bad credit asset-backed securities in 2017 as an example.First,the literature analysis method is used to summarize and summarize the research status at home and abroad.Secondly,the basic content of the case was analyzed.Then,the designs,effects and limitations of bankruptcy isolation were studied,and in-depth discussions were carried out using comparative analysis methods and charts.Finally,several suggestions were made and the full text was summarized.Through the study of the case,this paper believes that there are three problems in China’s asset securitization market,namely,product information asymmetry,basic asset reprocessing without institutional standards,and financing innovation to promote product quality contradictions,corresponding This paper draws three suggestions,namely,implementing the information classification disclosure system,improving the basic asset package reprocessing system,and promoting the convergence of asset securitization products and general bond product standards.