Case Study Of Tebon Ant Cash Now Consumer Loan Asset Backed Securitization

Consumer finance originated in the West and gradually became a more mature business model which has become an important part of the financial market.Over the past few years,China has transformed from an extensive economy to a new economic form.The rise of Internet consumption finance helps to promote the transformation of production from the demand side.At the same time,asset securitization also has the characteristics of rational allocation of funds and liquidize remnant assets.This paper takes Tebon Securities Co.,Ltd “Cash-Now”(hereinafter referred to as Tebon “Cash-Now”)Consumer Loan Asset Securitization Project as an example.By using the method of literature research and case analysis,this paper sorts out and summarizes the literature of domestic and foreign scholars on Internet consumer finance,small loan companies,bond issuance methods,etc.,and summarizes the issuance methods,issuance amount,and problems encountered in the issuance of Tebon “Cash-Now” Consumer Loan Asset Securitization that based on the current situation of China's bond market.In the part of case analysis,the author will first introduce the basic assets,participating institutions,transaction structure,product elements,credit enhancement measures and the distribution of maturity proceeds of Tebon “Cash-Now” consumer loan asset securitization project.Secondly,through the analysis,the author concludes that the advantages of Tebon “Cash-Now” consumer loans lie in the large data risk control technology of its basic assets,the issue of shelf offering and the Structure of Circular Purchase.It is precisely because of its many advantages that the product has become a popular bond type in the industry.On the other hand,what we can see is that the issue of Tebon “Cash-Now” bonds in 2018 decreased sharply due to the high leverage caused by excessive issuance.In addition,the author will also make a detailed analysis of the problems existing in the issuance of Tebon “Cash-Now” bonds,such as the unavoidable duplicate pledge of basic assets,the accumulated risk of repayment of basic assets in the circular purchasing structure and the excessive issuance caused by the imperfect shelf offering system.Finally,in view of the above problems,it is proposed to improve the quality of basic assets and reduce the repayment risk of basic assets by introducing block chain technology to improve personal credit investigation.At the same time,the traceability function of block chain technology can ensure the authenticity of basic assets and avoid the repeated pledge of basic assets.In addition,combined with shelf offering system and the regulatory loopholes of multi-department supervision,targeted suggestions are put forward to improve the relevant laws and regulations and strengthen the mixed supervision.By the end of 2018,the total scale of asset securitization issuance of consumer credit was 871 billion yuan,and that of Tebon “Cash-Now” series asset securitization was 211.91 billion yuan,accounting for 24.3% of the total scale.The excessive issuance of Tebon “Cash-Now” bonds has exposed the imperfection of the existing relevant systems in our country.In view of this situation,this paper puts forward corresponding suggestions,hoping that this paper can provide reference opinions to improve the quality of Internet consumer loan bonds and promote the gradual improvement of laws and regulations in China's bond market.