Definition of financial securitization

Financial asset securitization refers to various assets such as residential loans, credit card accounts receivable, etc. held by banks and other financial institutions or general enterprises through the creation of special purpose institutions (which can be divided into company types or trust types) and their risk isolation functions. The process of screening out assets that will generate cash flow in the future, have predictable credit quality and have standard characteristics (such as similar term, interest rate, debtor attribute, etc.) as the basis or guarantee, and repackaging these assets into unitized and micro-sized securities through the combination of credit enhancement and credit rating mechanism, and selling them to investors.

There are many kinds of financial asset securitization products, which are classified as follows:

The assets subject to securitization are distinguished: corporate loan creditor's rights, housing loan creditor's rights, cash card creditor's rights, credit card receivables, automobile loan creditor's rights, general enterprise receivables, bond creditor's rights, lease creditor's rights, etc. It is distinguished by the underlying assets of securitization: corporate loan claims, housing loan claims, cash card claims, credit card accounts receivable, automobile loan claims, general corporate accounts receivable, bond claims, lease claims, etc.

according to the order of repayment, it can be divided into priority (with high credit rating and high possibility of repayment of principal and interest) and secondary beneficiary securities (otherwise). According to the order of repayment, it can be divided into priority (higher credit rating, higher possibility of repayment of principal and interest) and secondary beneficiary securities (vice versa).

according to the issue period, it can be divided into medium-and long-term beneficiary securities with a term of more than one year (usually with a term of 1 to 7 years) and short-term beneficiary securities with a term of less than one year. According to the issue period, it can be divided into medium-and long-term beneficiary securities with a term of more than one year (generally, the term is between one year and seven years) and short-term beneficiary securities with a term of less than one year.

it can be divided into public recruitment (sales to unspecified majority) or private placement (sales target, number of people and transfer restrictions are specified). According to the way of issuance, it can be divided into public recruitment (sales to unspecified majority) or private placement (sales target, number of people and transfer restrictions have certain provisions).

compared with general financial products, the overall structure of financial asset securitization is huge, involving quite a few institutions, and the division of labor is responsible for each link. The intention is to carry out it through the expertise of each institution on the one hand, and on the other hand, there is a mechanism of mutual supervision and assistance and risk dispersion. The following is a detailed explanation for the trustee and service organization.

according to the regulations on financial asset securitization, Taiwan Province's financial asset securitization can be divided into two major structures: special purpose trust (SPT) and special purpose company (SPC), both of which aim at operating asset securitization business, but the organizational forms are different. Special purpose trust can be engaged in the trust relationship of asset securitization by operating trust enterprises, such as the trust department of banks, and the securitized goods it issues are called beneficiary industries. A special purpose company, which is a limited company with one shareholder and is organized by financial institutions, specializes in asset securitization business. The securitized products issued are called asset-backed securities, and the special purpose company will be dissolved immediately after the project is completed. At present, due to the relatively complete trust organization in Taiwan Province, most of the cases are conducted by special purpose trust structure.

The trustee is responsible for the following matters:

1. Responsible for the application of the securitization plan,

2. Providing the prospectus or investment prospectus,

3. Managing and disposing of the trust assets,

4. Selecting the trust supervisor,

5. Convening the beneficiary meeting,

6. Preparing a copy of the special purpose trust contract or.

the trustee may appoint a service agency to handle the management and disposal of the trust property on its behalf, that is, the service agency is responsible for collecting the accounts receivable from the debtor and paying the money collected to portfolio investor according to the contents of the contract. Because the service organization has to deal with a large number of accounts-related affairs, it must have the system and practical operation group to operate a large number of businesses, so it is usually the founding organization. The founding organization also serves as a service organization, which can not only maintain the relationship with its original customers through collection, payment and other services, but also obtain additional income from providing services. When rating securitized goods, credit rating agencies not only refer to the actual performance of assets and the whole securitization framework, but also the management ability and management system of service providers are often listed as one of the important evaluation items.

what is asset securitization?

Asset securitization is different from traditional securitization. Asset securitization is the securitization of existing assets based on existing credit relationships, such as loans and accounts receivable. Traditional securitization is the securitization in which enterprises issue stocks or corporate bonds in the securities market for direct financing.

There are many securitized assets, including: various mortgage loans, credit card receivables, billing infrastructure, financial leasing equipment, franchises, life insurance policies, etc.

Asset securitization not only reduces the risks of financial institutions, but also greatly improves the capital operation ability of financial institutions, and through the processing of primary products, It improves the quality of the loan portfolio, disperses the risks, and makes the guarantors and investors of securities get considerable income from many market participants.

Asset securitization is the most important innovation of financing mechanism in the world in recent years.

What does abs asset securitization of China Merchants Bank mean?

Just calculate the expected income of credit cards. If the income is 5 billion in the next five years, then an ABS can be issued to raise no more than 5 billion funds for other things.

is credit card securitization a write-off?

no. Supplementary knowledge: 1. More flexible asset disposal refers to the fact that asset securitization can package and sell assets that cannot be written off temporarily compared with various requirements for write-off, thus avoiding the problem that some assets have been unable to be written off, which affects the bank's risk performance; 2. Faster disposal of assets In the traditional write-off, there is a clear limit on the length of overdue assets, while asset securitization products can sell products with earlier overdue stages, thus disposing of non-performing assets faster. Reduce financing costs and risks and increase funds

What is the securitization of state-owned enterprises?

the reform of state-owned enterprises has become a hot topic at present, and the driving force of the stock price rise mainly comes from the introduction of the reform plan of state-owned enterprises, the promotion of individual examples, the asset injection under the expectation of mixed reform, and the stock price surge brought about by cross-group integration.

the securitization of state-owned enterprises is an important part of the reform of state-owned enterprises. The State-owned Assets Supervision and Administration Commission (SASAC) issued a notice in June, requiring central enterprises to intensify the integration of internal resources, promote the integration and development of related subsidiaries, increase capital operation, promote asset securitization, make good use of market value management means, revitalize the resources of listed companies and maximize the value of assets. What is the securitization of state-owned enterprises?

first, let's learn about asset securitization.

Asset-backedSecuritization (ABS) refers to the financial activity of transforming assets into securities through structural reorganization. Assets that lack liquidity but have predictable income are sold by issuing securities in the capital market to obtain financing, so as to maximize the liquidity of assets. The securitization of state-owned enterprises is the process of asset securitization of state-owned central enterprises.

the basic assets of asset securitization in China mainly include three categories: accounts receivable assets (credit card receivables, trade financing, equipment rental fees), loan assets (housing mortgage loans, automobile consumption loans, commercial real estate mortgage loans, medium and long-term bank loans) and charging assets (infrastructure fees, ticket income).

Four types of business of asset securitization:

1. Securitization of physical assets: the process of issuing securities and listing on the basis of physical assets and intangible assets. The main ways are: 1. Issuance and listing of stocks; 2. Issuance and listing of real estate securities; 4. Issuance and listing of industrial investment funds

2. Securitization of credit assets: the reorganization of credit assets with illiquidity but future cash income streams to form a pool, and the issuance of securities on this basis.

3. Securitization of securities assets: securities are used as the basic assets, and then securities are issued based on the cash flow of the securities or variables related to cash flow.

4. Securitization of cash assets: refers to the process that cash holders convert cash into securities through securities investment.

It should be noted that the short-term opportunities focus on asset securitization, and the medium and long-term opportunities lie in the reform of incentive mechanism. Paying attention to information technology, nuclear power, scientific research institutes, military industry and other fields in central enterprises, local state-owned enterprises suggest paying attention to state-owned enterprises such as Shanghai, Guangdong, Fujian, Zhejiang, Shandong and Chongqing, especially those belonging to Guangzhou, Shanghai and Nanjing, which may bring more surprises.

What does ABS mean?

In a narrow sense, ABS usually refers stock raising funds by lending money from banks and issuing bonds in the capital market.

venture capital, that is, based on the assets owned by the project, is guaranteed by the expected income that the project assets can bring. I don't know, the assets, investment banks and commercial banks are mainly supported by the predictable and stable cash flow generated by securities issuance.

Stock is an investment in a specific asset pool, which is analyzed by merger and acquisition, and sold to the capital market through securities issuance.

Maybe. MBS means mortgage-backed securities in Chinese. , is the earliest asset securitization varieties, bonds.

ABS refers to the act of converting illiquid assets into securities that can be freely traded in the financial market. Product S. MBS mortgage-backed bonds or mortgage securitization. ABS financing mode is a securitization financing mode supported by the assets of the project. It is mainly funded by American specialized housing banks and savings institutions.

and credit enhancement measures. Enterprise accounts receivable and other assets with predictable and stable cash flow are packaged into asset pools and then issued bonds to investors. Then do asset packaging and segmentation, in, backedsecurity.

b and ABS underwritten and supported refer to that the sponsors package their illiquid loans or other credit assets with future cash flow income into highly liquid securities, Basement, also called asset-backed securities or asset-backed securities.

The bonds or bills issued by credit card companies or other credit providers with loan agreements or accounts receivable as the guarantee basis first came into being in the United States in the 196s. In the capital markets of non-bank financial institutions, such as project financing, the underwriters' investment banks bought ABS. "What does ABS mean here? ABSAssetBackedSecurities.ABS are two common types of Asset securitization. The earliest use of asset is that the founding bank usually groups assets with cash flow, and issues tradable securities as a kind of financing, MBS and transaction enterprise reorganization.

Asset-backed securities, the full name of which is Asset, make it liquid. It is a bond issued with a portfolio of assets as collateral, and it is supported by a specific portfolio of assets or a specific cash flow. BackedSecurity。

AssetPool, assets, abbreviated as ABS. MBS is the earliest asset securitization product, asset-backed bonds.

The introduction of the concepts of credit card asset securitization and credit card asset securitization ends here. Did you find the information you need from it?