Pricing Research On Asset Securitization Of Auto Finance Companies

As an important tool to enrich the financing channels of the auto finance industry and broaden the sources of funds,asset securitization is of great significance for breaking through the bottleneck of auto finance business development and improving profitability.With the deepening of China's financial innovation and the loosening of the development of asset securitization business by regulators since 2012,the scale of asset securitization products has grown rapidly since 2015.Among them,the market size of auto loan asset securitization products is gradually increasing,becoming the new star of market share after securitization of mortgage loans.Regardless of the financial product,a reasonable and comprehensive pricing system and a scientific system of processes for assessing risk are essential safeguards for its continued development.China's auto loan asset-backed securities are still in their infancy,lacking a mature pricing mechanism.Therefore,this paper combines the research results of domestic and foreign scholars on asset securitization,focusing on the pricing research of auto loan asset-backed securities.China's auto loan asset-backed securities are still in their infancy,lacking a mature pricing mechanism.Therefore,this paper combines the research results of domestic and foreign scholars on asset securitization,focusing on the pricing research of auto loan asset-backed securities.Then,by comparing the advantages and disadvantages of the internationally used pricing model of asset securitization,combined with the current development status of asset securitization in China,an improved pricing model is proposed.The model combines the idea of Monte Carlo simulation based on the static spread method to dynamically simulate the interest rate in the pricing process.After a case study of “RongTeng 2017 Second Asset-backed Securities”,the data of the product was used to simulate the pricing.The pricing results show that the pricing results simulated by the improved model are closer to the actual situation than the static spread pricing results.The reasons for the differences between the analysis of each pricing result and the actual situation,as well as the inadequacies of the research and the future direction of the research.Finally,the article puts forward corresponding suggestions for the pricing of China's auto loan asset-backed securities.