Identification And Control Of Credit Risk Of CMBS

The development of an enterprise is inseparable from the need for capital.As a category of asset securitization,CMBS also has the advantages of expanding financing channels and reducing financing costs.It can also meet the individual needs of different investors,thus catering to the needs of China's financial market development.However,opportunities and challenges co-exist,and CMBS began to experience defaults in the process of vigorous development,and caused a certain impact on the market.This article selects the special plan for the asset support of the beneficiary right of the Hongbo exhibition as a case study.This is a typical credit risk event.This article uses a combination of qualitative and quantitative methods,taking the Hongbo exhibition CMBS as an example to study the credit risk identification and control of CMBS products.This article identifies the causes of product credit risk from the corporate governance,operating financial situation,and historical credit of borrowers and guarantors,and it is concluded that due to their corporate governance deficiencies,the company has suffered a substantial debt default,coupled with poor operating conditions and historical credit,making its ability to provide financial support,difference payment and guarantees decline.As a result,there was a problem with the collection of the cash flow of the underlying assets,and the credit enhancement measures failed,and the final product had a substantial default one year after the issuance.And through the KMV model and the Z scoring model,the credit risk of the case product is measured afterwards,and compared with similar products to test the model's ability to identify credit risk of the product.Through analysis,the following conclusions are drawn:(1)KMV model and Z scoring model have good credit risk recognition ability for CMBS products;(2)Case product credit risk gradually increases after issuance;(3)The overall credit risk of CMBS products is high.The research in this article reminds investors to pay attention to the changes in credit risk of products and adjust trading strategies in a timely manner.At the same time,the regulatory departments should improve the relevant business guidelines,legal systems and default disposal as soon as possible to provide a good market environment for the development of domestic CMBS.