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Credit asset securitization transactions embarrassing cold case

a few days ago, the CBRC, Central Bank embarked on reform of distribution system of asset securitization, filing and registration systems have been landed, widely seen in the industry, which will further stimulate enthusiasm for issuing credit securitization of credit assets of commercial banks, 2015 release of the securitization of credit assets is expected to once again expand. However, the economic information daily, Xinhua was informed that so far this year, credit asset securitization issue was not as expected "blowout" trend.

industry analysts believe that active participation of small and medium banks, but because of its limited asset quality, size is not large, and big banks and joint-stock banks in the case of loan-check pressure in face downward pressure, preferring to save the quality of credit assets, no rush to transfer of securities processing. Meanwhile, the stock market hot cold in the bond market, yields credit asset securitization products limited appeal, the lack of liquidity, the important cause of market cools.

trends of small and medium financial institutions strong will

the economic reference newspaper reporter learned from authoritative channel exclusive data, credit asset securitization issuance in the first quarter of this year was only 50.9 billion yuan, issued 17 single-product, the scale of which 42.2 billion yuan for loans to the public. Compared with last year, credit asset securitization issue more diversified this year, foreign-funded banks, city commercial banks, rural commercial bank began actively participating in the market.

last August, China's first rural small and medium financial institutions asset securitization project released in the interbank market, which means expansion of asset securitization project official of the issuer, from small and medium financial institutions in rural areas. According to the regulators support the original intention of bank credit asset securitization, securitization of credit assets out of the stock tables, new lines of credit to continue to "sannong" and small business field.

industry analysis think, this year small financial institutions of issued wishes more strongly, main is past years within for enterprise issued of medium-and long-term credit accounted for than larger, in economic down period, some capacity excess industry funds turnover appeared problem, Bank face loan than, regulatory assessment pressure, need maneuvers out some credit resources for credit put direction of structural adjustment, assets securities of undoubtedly became important channel.

However, these small and medium financial institutions in circulation does not have a large size and strength, "issued securitized products at the local bank is small, every 10 to 3 billion yuan. "A rating agencies in structured finance department who told the economic information daily said that" banks are largely based on the public loans into asset-backed securities, especially local banking, credit type is single and almost no assets for retail credit package, while large banks or joint-stock bank credit assets is relatively rich. "

usually, City firm and agricultural firm of loan put concentrated degrees high, and each area has very highlight of industry features," like Shanxi local bank for coal Enterprise issued of loan volume on compared more, so assets package in this class industry of loan will more some, but we from rating of angle,, not recommends type too concentrated, from regulatory requirements aspects, also requirements some quality assets into pool, so, small financial institutions can do securities of of credit assets volume on not too big. "The rating agencies further said.

in recent years, local banks ' credit institutions, a number of banks involved more loans to local-government financing platforms, but people familiar with the matter said, in the asset securitization products, there are no pure platform loans packaged into pools of assets, but some urban transportation, infrastructure construction and other types of loans. Real estate development loans, some banks would be part of the packaging into the pool, but is basically a better real estate loans.

as far as good loans rats know, credit asset-backed securities into the pool of assets, would generally cover 10 to more than 30 industries, regions, little more than 10 in number into the pool house, many thousands of single than the vast majority of its assets not more than 15%, so the risk as a whole is more dispersed.

limited stock-market money restricts heat demand

, however, for circulation in the first quarter of this year, the industry believes that approval does not render after the constraint relaxation "blowout" situation, mainly due to market supply and demand is weak. Haitong securities analyst Chao Jiang pointed out that, for the system efficiency has greatly increased, but 2015 securitization of credit assets in the first quarter the average monthly circulation of 16.9 billion, anti-28% lower than in 2014, despite the constraints eliminate the administrative approval, but the future depends on the level of development of market supply and demand.

more important is that the stock market rise prompted some capital transfers, current purchasers of credit asset securitization products are big banks, city commercial banks, funds, financing, insurance and trust. "Judging from the demand-side, hot stocks and cold debt, securitization of credit assets yield limited appeal, the lack of liquidity. "Chao Jiang further analysis shows that the" stock market hot restricted demand for bonds, yields a higher degree of standardization demand for debt products is also insufficient, CLO (typical of a short term credit asset securitization) coupon of less than 6% appeal is more limited; another major problem is that trade repo financing backed by cold and difficult to carry out, the lack of liquidity. "

these rating agencies in structured finance Ministry sources, currently a 3 a-level credit asset securitization products one-year interest rate 4.8% to 5.1%, down from 6% in the same period last year, but compared with last November, slightly elevated levels of 4% to 4.8%. "Issuing tender prices there are a lot of factors, the Central Bank's benchmark interest rate is given is a ruler, a rating and duration. Ordinary credit asset securitization products for a period of 10 years or so, but investors difficult to transfer, the regulator has not been released, tend to invest short-term ClO market demand. At present, many institutions choose to obtain higher-yielding stocks. "The analysts said.

for some banks, the adjustment of the economic structure transition period, lending is not easy in many areas, in the case of projects is hard to find, and prefer high quality credit assets retained, rather than for asset transfer of securitization. Chao Jiang says, "on the supply side, long-term assets are scarce, LDR stress management, profitability is limited. Scarcity of good assets under the downward long-term trend in interest rates fading after deposit into a deposit on, ADB loan stress management, stock market and preferred stock issued by capital pressure relief, loan interest rate and interest rate spreads is limited by factors such as lack of profitability is restrict banks willingness. "The

Chinese Academy of Social Sciences Institute of finance and banking Research Director Zeng Gang that, due to the China Banking Regulatory Commission on basis of asset securitization of credit assets substantive requirements more stringent, some lack the drive to securities by the issuer, investors will not be satisfied with low yields, credit-backed securities" supply two less "dilemma, second round of pilot lines in fact are not fully used. Zeng Gang believes that expanding the variety of underlying asset pool, as long as the disclosure completely, bad assets into the pool.

potential stock funds to activate channels is expected to expand

even current credit asset securitization market cools, but some institutions remain optimistic in the long term. Bank of international research on securitization of credit assets registration system noted in the report, calculated according to the interest payment date, combined circulation of 311.9 billion last year, estimated 2015 circulation may reach more than twice times last year.

"through the stock of debt liquidation and reorganization, estimate the value of stock assets to clean up ' zombie ' credit make room for new credit, which is a prerequisite for securitization of credit assets. "Chinese Academy of social sciences financial focus laboratory director Liu Yuhui pointed out that," continues to advance credit assets securities of is ' Activate stock ' of important aspects, will Bank of loan restructuring Hou, again design for Standardization of securities products, in capital markets Shang circulation trading, this can achieved bank credit assets exit, in not additional increased credit of situation Xia upgrade Bank service entity economic of level and capacity, while can improved Bank of credit assets structure. This will help commercial banks ' core capital allocation, change dependent on the expansion of the business model. "The

innovation of the CBRC supervision Department director Wang yan Xiu had revealed at the 2015 annual meeting of the Forum on China's asset securitization," 160duowanyi China's total banking assets, securitization of credit assets will reach 90 trillion. "He believes that China's asset securitization in the asset range, or scope of participants and other aspects of trading venues will be expanded.

for credit assets securities of, industry analysis people General think, to as soon as possible change credit assets support securities of Bank mutual holding phenomenon, and abroad compared, domestic assets support securities of two level market trading does not active, Bank between each other holds credit assets support securities not only reduced has assets securities of on accelerated Bank system funds turnover, and promote bonds market development of meaning, also no up to dispersed industry risk of role, management layer should accelerated foster domestic assets support securities two level market, For securitization of credit assets into a banking to normal management tools to create a good market environment.

from the stock funds to activate the market environment as a whole, in the short term, Bank stock inventory of assets of bank credit was exploring more new tools, such as the expansion of credit mortgage refinancing and improve Central Bank collateral management framework to solve the problem of insufficient collateral for small and medium financial institutions, is expected in the industry, banking release channels for stock funds will be "targeted" expansion.

 

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