Lease securitization can be roughly divided into an urban investment, industrial and commercial enterprise, automobile, and intra-group leasing. Leasing assets securitization can largely broaden the financing channels of finance leasing companies, reduce financing costs, improve the speed of capital flow, optimize the structure of assets and liabilities, and partially transfer and reduce operational risks. Compared with traditional debt financing tools, ABS has its distinct advantages.
Issuing asset-backed securities based on accounts receivable claims of enterprises or the source of cash flow of underlying assets. It helps to open up new financing channels for enterprises, reduce their dependence on bank credit, and speed up the return of funds, which is of great significance for solving the financing difficulties of small and medium-sized enterprises.
Refers to the business activities in which a securities company collects collateral (margin) from customers and lends funds for them to buy listed securities (financing) or lend listed securities for them to sell (short selling). Investors borrow funds from securities companies to buy securities is “margin trading” and investors will securities companies borrowed securities selling operation is “short selling trading”.
This is an important basic asset type of asset securitization, whose underlying asset is trust beneficial right. The process of issuing asset-backed securities is based on a structured credit enhancement supported by the stable cash flow generated.
The scale of consumer finance has grown rapidly, pushing up the scale of micro-credit products. Both micro-credit and enterprise receivables have maintained a rapidly rising trend. In particular, the number of micro-credit products issued has increased by as much as 63.89% globally. Securitized products of credit assets of small loans account for 35.38% of the total amount of such products, only accounting for 47.58% of the total amount of online consumption products of small loans, with a total issuance scale of US $1112.242 billion.
Asset-backed securities with credit enhancement based on consumer loans and automobile loans through structured design. Consumer loan securitization can be divided into three categories:
1)Auto loans and credit card receivables provided by commercial banks;
2) Commodity loans and cash loans provided by licensed consumer finance companies;
3) Various installment loans provided by consumer financial institutions based on Internet consumption scenarios.
CIO usually backed by insurance or reinsurance contracts. Collateralized insurance means that an applicant uses the cash value of his/her policy to an insurance company as collateral. This is a method of financing by obtaining a loan based on a certain percentage of the cash value of the policy after the approval of the insurance company.
A collateralized loan obligation (CLO) is a single security backed by a pool of debt. Collateralized loan obligations (CLO) are often backed by corporate loans with low credit ratings or loans taken out by private equity firms to conduct leveraged buyouts. They are similar to a collateralized mortgage obligation (CMO), except that the underlying instruments are loans instead of mortgages.
A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. The pooled assets then become debt obligations, serving as collateral for the CDO. CDO is a fixed income security with a highly predictable cash flow.
A Mortgage-backed Security (MBS) are bonds backed by payments on mortgage loans. Most commonly secured by home and other real estate loans. Mortgages are sold to institutions such as an investment bank or government institution, which then packages it into an MBS that can be sold to individual investors.