Immediate Consumer Finance Personal Consumer Loan Assets Securitization ABS Case Study

Under the dual-cycle development pattern,expanding domestic demand has become an important force point of policy.In the medium and long term,licensed consumer finance companies play a key role in promoting consumption,improving financial services and building inclusive finance,and it is necessary to lay out consumer finance business in advance by vigorously replenishing funds.The government issued a document to encourage consumer finance companies to adopt diversified financing methods.Since licensed consumer finance companies and online small loan companies cannot directly absorb deposits from the public,they need to raise funds through shareholder loans,interbank loans and other means.In contrast,ABS has the advantages of off-balance-sheet assets and good liquidity,and is the most practical means of financing,with the effectiveness of revitalizing existing assets and improving the efficiency of fund allocation.At the same time,the issuance of ABS,the assetbacked securities of consumer finance,is an important indicator to observe the development of consumer finance industry.As an important financing channel,more and more consumer finance enterprises choose to raise funds through asset securitization in order to ensure the continuous and stable source of funds.As a formal licensed institution in the consumer finance industry,Immediate Consumer Finance Co.,Ltd.developed rapidly after its establishment in 2015,and became the head institution in the industry within two years.At present,it has continuously strengthened its business strength and expanded its financing scale by issuing product-backed securities in a normal way.The research takes the securitization product "An Yi Hua 2020 Phase I Personal Consumption Loan Asset-backed Securities" as the research object,and discusses its basic asset characteristics,product structure,asset pricing,risks and slow-release measures,as well as the product issuance effect and promotion feasibility.Based on the case analysis of "An Yi Hua 2020-1ABS",it is found that: In terms of the characteristics of ABS basic assets,the basic assets in the initial asset pool of the product " An Yi Hua 2020-1" are highly dispersed and have good credit quality;In terms of product structure,it adopts the design mode of cyclic purchase of "dynamic asset pool",internal credit enhancement and cash flow collection and distribution;In the aspect of ABS pricing,the nominal spread pricing method is used to verify the pricing of securities "20 An Yi Hua ".The results show that the priority of "20 An Yi Hua " is 3.5% in coupon rate and 3.98% in coupon rate,which is within a reasonable range.In terms of product risks and mitigation measures,although the product " An Yi Hua 2020-1" has the risks of circular purchase,credit risk,liquidity risk and interest rate risk,relevant measures have been taken to mitigate it,effectively reducing the risks of the product;In terms of the product distribution effect and the feasibility of promotion,the product " An Yi Hua 2020-1" has achieved low financing cost and solved the problem of maturity mismatch,and put forward the measures of external credit enhancement and the adoption of two-tier trust model to improve the feasibility of product model promotion.