Take the real estate finance industry as an example:
There are many forms of real estate asset securitization, which can be summarized into the following four categories:
1. Off-balance-sheet treatment-Real estate companies that realize securitization through sales sell their own assets to SPV (an intermediary agency specializing in asset securitization). After the assets are sold, they are isolated from the debts of the original company (sponsor). SPV improves the credit of assets through intermediaries (asset income guarantee, insurance, joint liability of promoters, etc.). ). Investment banks carry out securitization design, issue ABS (Credit Asset Securitization) to investors, and recover cash for purchasing assets from sponsors.
2. Off-balance-sheet treatment-Securitized real estate companies with asset-backed financing sell their own assets to SPV and issue ABS financing to investors. Because the asset has not been sold, the real estate company will use the asset as collateral for securities repayment, and the asset is still on the issuer's balance sheet.
3. Mortgage securitization is a process in which loan banks combine the principal and interest of mortgage loans, sell them to SPV and issue asset-backed securities through investment banks. It turns the long-term loans of banks into securities, accelerates the capital turnover of banks, reduces long-term risks and promotes the further development of the real estate industry.
4. Securitization of real estate financial leasing assets refers to the process that leasing companies sell the income right of real estate leasing contracts to SPV and issue ABS capital through debt separation.