Trust Beneficial Right Asset Securitization and High Financing Costs

DOI

10.2991/ichssr-16.2016.76How to use a DOI?

Keywords

trust beneficial right; asset securitization; financing cost; liquidity

Abstract

The trust beneficial right asset securitization has general advantage of asset securitization that it can reduce financing costs. But in China, financing by issuing trust beneficial right securitizations does not have an advantage. There are many factors that can lead to this phenomenon. In this paper, we analyzed the special asset management plan of the trust beneficial right securitization that sponsored by Haiyin co., LTD. We found that liquidity of the securitizations is the main factor influenced by recognition, the terms of the design, market system and laws. Liquidity risk requires compensation, so financing by issuing trust beneficial right securitizations can't effectively reduce the financing costs.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Huanhuan Ruan
PY  - 2016/07
DA  - 2016/07
TI  - Trust Beneficial Right Asset Securitization and High Financing Costs
BT  - Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016)
PB  - Atlantis Press
SP  - 360
EP  - 363
SN  - 2352-5398
UR  - https://doi.org/10.2991/ichssr-16.2016.76
DO  - 10.2991/ichssr-16.2016.76
ID  - Ruan2016/07
ER  -