Research On CMBS In Weak Credit Subjects

Since 2015,with the vigorous support and encouragement of the national policy,Asset-backed Securities in China has developed rapidly.By the end of 2018,the total issuance scale has exceeded 5 trillion yuan,and the types of basic assets have also been greatly enriched.Among them,Commercial Mortgage Backed Securities(CMBS)has also ushered in a golden period of rapid development because of its innovating commercial real estate financing channels,significant role in revitalizing commercial real estate stock,serving the real economy,improving the efficiency of capital allocation and deepening the supply-side reform.Therefore,the analysis and exploration of the structure design,credit enhancement and risk control of CMBS can provide valuable reference value for the healthy and orderly promotion of CMBS in the commercial real estate field.Firstly,this article starts from the development status of CMBS,introduces CMBS and points out that the development of CMBS depends too much on strong credit subjects.Secondly,taking the successful issuance of CMBS by the weak credit subject West International Trade Hotel as an example,this article makes a detailed study and analysis of the core links of CMBS by West International Trade Hotel,such as structure design,credit enhancement,cash flow prediction and risk control,and summarizes the practical points and successful experience of issuing CMBS by weak credit subjects,and proposes solutions to reduce the dependence of CMBS on strong subjects,such as selection of high-quality assets,strict risk isolation and robust cash flow forecasting.Finally,two prospects for the development of CMBS are put forward: the third-party asset service institutions and CMBS which is divorced from the subject credit.