Research On The Credit Risk Of Supply Chain Finance Reverse Factoring ABS

Small and medium-sized enterprises occupy an important position in the development of national economy of our country,so they often fall into financing predicament because of their industrial position,weak economic strength and so on.In order to solve the problems of "difficult and expensive financing" of small and medium-sized enterprises,supply chain finance appears accordingly.With the practice and innovation of factoring asset securitization in our country in recent years,the combination of supply chain finance and reverse factoring asset securitization can well solve the financing dilemma of small and medium-sized enterprises,and realize the rapid flow of funds of upstream and downstream enterprises in the supply chain dominated by the core enterprises.Reverse factoring ABS is mainly used in the real estate industry.However,with the continuous improvement of policies and regulations of reverse factoring ABS and the continuous prominence of its advantages,reverse factoring ABS has been continuously applied in different industries.As a leading private and independent automobile enterprise in China,BYD took the lead in issuing the first reverse factoring ABS product of supply chain finance in the automobile industry.The research on the credit risk of BYD reverse factoring ABS product can provide reference for the issuance of related products in the automobile industry and enrich the research on the credit risk of ABS.This paper mainly takes ABS credit risk of supply chain finance reverse factoring as the research object,and adopts case analysis,literature analysis,qualitative and quantitative combination to analyze the credit risk of the research object.Firstly,the research background and significance of supply chain finance reverse factoring ABS as well as the research status at home and abroad are expounded.Secondly,it defines the concepts involved in this paper and lays its theoretical foundation.Then the transaction structure,basic information and relevant parties of the case are introduced.The credit risk analysis is carried out on the transaction subject and the underlying asset designed in the case.According to the core enterprise involved in the transaction subject,the default probability is analyzed with the KMV model and the default analysis of the factoring.The analysis shows that the default rate of the core enterprise is low,and the credit quality analysis of the underlying asset is mainly conducted by analyzing the concentration of the underlying asset.The cash flow stress test model was used to test the risk of insufficient cash flow and the effectiveness analysis of the transaction structure.The analysis concluded that the case had high concentrated risk of the underlying asset.According to the results of the case analysis,the risk optimization measures were proposed for the credit risk,the risk management of the underlying asset was strengthened and the relevant information of the factoring was improved.Finally,the conclusions of this paper and implications for reverse factoring ABS and automotive supply chain finance policy are drawn.