| Since the 1990 s,China’s automobile industry has been developing rapidly.While the consumption of automobiles is increasing,financing difficulties have emerged in the development of auto financing companies that provide auto loan services to consumers.The emergence of Asset-Backed Security of auto loans is not only the innovation of financial products,but also provides a way to solve the problem of financing difficulties,so as to promote the steady growth of assets of auto financing companies.Different from Corporate Asset-Backed Security,the analysis of the special business process and risk points of Asset-Backed Security of Auto Loans provides certain reference for us to explore new financing methods in the auto industry and promote the continuous expansion of auto finance market.This paper takes Faw Auto Finance Company as the research object and takes the First Phase of Yi Ang Personal Auto Loan Asset-Backed Security issued in 2019(hereinafter referred to as Yi Ang phase I in 2019)as an example.This paper systematically describes the trading structure of the product,the basic assets of the fund pool and the institutions participating in the transaction,with emphasis on the general situation of the issuance and operation of Asset-Backed Security,the way of credit enhancement and the cash flow distribution mechanism of the trust account.On this basis,the risk analysis of transaction structure,performance analysis of participating institutions,quality analysis of basic assets,performance analysis of borrowers and mortgage analysis of pooled loans were conducted.After sorting out and summarizing the pricing models of Asset-Backed Security,the Static Cash Flow Rate of Return Method and Static Spread Method were used to price the priority Asset-Backed Security of Yi Ang phase I in 2019,both of which believe that the securities are worth investment.After analyzing the characteristics of Yi Ang phase I in 2019,this paper concludes that the advantages of this product lie in: higher quality of the underlying assets,lower risk of the transaction structure,and more effective internal enhancement methods such as excess spread,priority/secondary structure and credit trigger mechanism.Accordingly,the product has the disadvantage that the underlying capital pool involves some concentrated risk and no external credit enhancement.The analysis and of Yi Ang phase I in 2019 business process and product characteristics can provide certain reference for other domestic auto financing companies in innovative financing channels,and also provide some reference for relevant transaction participating institutions and financial market,which is conducive to the improvement and reform of relevant laws and regulations on auto loan asset securitization. |
