The biggest problem of asset securitization in China is that there is no secondary market, all of which are subscribed in the primary market, and there is almost no liquidity. No trader wants to buy ABS or CLO. In order to solve this problem, the future possibilities are:

First, introduce a reasonable rating mechanism:

Our rating mechanism is not perfect at present, and many fund companies will not believe that rating companies do their own credit analysis; Moreover, there is no perfect evaluation system for ABS rating in China.

Second, the policy orientation is weakened, and market-oriented issuance is dominant.

As we all know, CLO was fully opened in August 20 13 under the guidance of the policy of "revitalizing the stock", but the interest rate of these assets is not high and unstable, so listing is of little significance. For a commercial bank with trillions of assets, it is impossible to "revitalize the stock" only by issuing CLO of 2 billion yuan. Therefore, high-risk and high-yield credit assets (at least higher than bonds in the same period) are more suitable for asset securitization, which can also achieve the purpose of reducing bank risk exposure.

Third, the increase in trading volume.

With the realization of the first and second, the credit spread of asset-backed securities will be more recognized and the income will be higher in the future. Only when more institutions are willing to trade ABS and CLO will investment banks have the incentive to issue.

I have to say, CLO Because it is difficult to find a buyer, so many banks take a little and I take a little, which is a bit like developers buying their own property to make up the rate, or trust company bosses scrambling for financing.

-Reprinted by Dianjinren