Generally speaking, the first step in the basic operational procedures of asset securitization is to determine the asset pool, which is the combination of assets to be securitized.

The operational process of asset securitization

Generally speaking, the main participants in a complete asset securitization financing process are: promoters, investors, special trust institutions, underwriters Commercial banks, investment banks, credit enhancement agencies or guarantee agencies, credit rating agencies, custodians and lawyers, etc. Generally speaking, the basic operating procedures of asset securitization mainly include the following steps:

The originator (generally the financial institution that issues the loan, which can also be called the original equity holder) securitizes the assets according to its own Financing requirements, determine asset securitization goals, clean up, estimate and assess the credit assets you own that can generate future cash income flows, and make a basic judgment on the average cash flow level of the entire portfolio based on historical experience data.

Determine the borrower's credit, the mortgage value of the mortgage-guaranteed loan, etc., and combine receivables and foreseeable cash flow assets. The cash flow can be restructured according to the loan's term structure, principal and interest reorganization. Arrangement or risk reallocation is carried out, the number of assets is determined according to the securitization target, and finally these assets are pooled to form an asset pool.

A special trust institution is an independent trust entity with the sole purpose of asset securitization. Sometimes it can also be established by the promoter. The activities of the registered special trust institution are strictly restricted by law. Its capitalization level is very low, and all funds come from the income from the issuance of securities.