Dismantling ants 100 billion Abs: how can the watch sharp tool be pressed to 4 times the lever

category:Finance
 Dismantling ants 100 billion Abs: how can the watch sharp tool be pressed to 4 times the lever


According to 21st century economic report, the ABS products issued by ant group have been designed in layers. Huabei ABS is generally divided into three layers, including priority, secondary priority and secondary. Priority accounts for the main part. In one of the ant ABS, priority, sub priority and sub asset-backed securities accounted for 89%, 4% and 7%.

ABS statement is one of the important means for ants to enlarge the loan scale. Among the 2.15 trillion yuan loans promoted by ant group, only 2% of them belong to on balance sheet loans, and the remaining 98% are issued by cooperative financial institutions or ABS securitization.

However, the controversial network of small loans unlimited leverage is about to end, ABS table will also be limited. According to the new regulations on small loans issued by the central bank and the China Banking and Insurance Regulatory Commission in November, the balance of small online loans through standardized financing (bonds, asset securitization products, etc.) shall not exceed four times the net assets.

Special ant ABS

On November 25, the information platform for corporate bond projects of Shanghai Stock Exchange announced that the status of Huabei and jiebei, two ABS financing projects under ant group, had been updated to pass, with a total scale of 20 billion yuan. They were Guotai Junan jiebei phase 4-12 consumer loan asset support special plan and China credit securities Huabei phase 1-10 credit payment asset support special plan.

There are three other projects that have been accepted, namely Tianhong innovation Huabei phase 8-15 consumer credit financing asset support special plan, CAITONG asset management Huabei credit payment asset support special plan, and CITIC Securities Loan Asset support special plan for phase 5-14 consumer loan asset support. The scale is 8 billion yuan, 8 billion yuan and 10 billion yuan respectively.

According to the statistics of enterprise early warning, up to now, ant has issued 728.603 billion yuan of ABS products, of which 263.203 billion yuan of ABS products were issued through ant Shangcheng small loan, and 465.4 billion yuan of ABS products were issued through ant small loan.

In fact, after the IPO of ant group was stopped urgently, ant ABS, which has been popular for a long time, is still issuing. On November 23, ant Shangcheng small loan issued 1.7 billion yuan ABS, with a debt rating of AAA.

However, the IPO suspension also has an immediate impact on ABS. On November 9, ant Shangcheng small loan issued AA + rating of 2.03-year ABS, with a coupon rate of 4.97%, significantly higher than the coupon rate range of 3.75% - 4.55% from June to September this year.

As for the issuance of ant ABS, an asset securitization person said that in the future, the issuing interest rate of ant ABS will be increased, but the approval of Huabei and jiebei ABS means that the relevant asset-backed securities continue to obtain official recognition, which is also a mature product with market operation for many years, and there will still be funds to purchase. Another ABS personage thinks that the ant ABS issue may have some difficulties in the near future, and the key is whether to persuade the major banks.

Some people in the industry pointed out that ant ABS is a special one in the asset securitization market. The underlying assets of Huabei and jiebei are small and highly dispersed loan assets. Asset securitization generally depends on the project credit of the underlying assets and the subject qualification of the issuer. But to a certain extent, the industry still pays more attention to the credit qualification of ant group.

How decentralized are the underlying assets of ant abs? According to a release note of ant ABS obtained by the reporter of 21st century economic report, ant Huabei, the main consumer credit product of ant, has an average household loan of about 1600 yuan and 2500 yuan by installment of bills and transactions.

Who is buying ant abs?

According to 21st century economic report, the ABS products issued by ant group have been designed in layers. The priority buyers are usually the banks own funds and financial management funds, while the inferior ones are generally purchased by securities companies and asset management funds, and even the plan managers will hold some of them.

Huabei ABS is generally divided into three layers, including priority, secondary priority and secondary, and priority accounts for the main part. In one of the ant ABS, priority, sub priority and sub asset-backed securities accounted for 89%, 4% and 7%.

In the case of non-performing assets, it is necessary to manage the underlying assets in accordance with the trust agreement; to provide support for the underlying assets of the issuer according to the trust agreement Credit situation: the total coverage ratio is more than 110% in order to provide credit enhancement; an accelerated settlement mechanism is set up under the following conditions: within the duration, the sum of funds in the asset pool and outstanding principal balance does not reach 100% of ABS and outstanding principal balance in 60 natural days, and the non-performing rate of underlying assets (including non-performing assets disposed) exceeds 6% in five consecutive working days.

According to the release notes of Huabei ABS, ant ABS risk management is realized through asset sampling, t + 1 monitoring and other means.

Among them, in the due diligence, the manager sampled ant asset pool to confirm that it clearly identified each asset transfer, effectively preventing the risk of asset mixing among different products. In the post loan management, the manager samples each asset package to confirm that it meets the eligibility criteria and the asset characteristics are consistent.

Through the asset query platform, the daily tracking management of asset pool data is realized. The daily data monitoring includes total assets scale, return rate of asset pool, idle fund ratio, overdue rate, non-performing rate, etc.

The end of unlimited leverage mode of online lending

Through the path of asset securitization, ant group will spend and borrow assets out of statement, and then investors will buy and hold, and then lend funds circularly. This asset light model takes up less capital, but ants are also accused of unlimited leverage by some industry insiders.

The crux of the problem is still the Basel Accord.

Small online loan companies evade leverage regulation and make loans of more than 10 billion yuan with low registered capital. The reason is that, after listing through ABS, the joint lending institutions do not include in the scope of leverage and do not need to withdraw risk capital.

Basel Accord requires financial institutions to take their own risks.. A person in the fixed income industry said that the ABS of the exchange belongs to standardized assets, not non-standard, and the purchase of banks and securities companies is of course compliant. After Huabei and jiebei are listed through ABS, ant transfers the income and risk to the corresponding investors. As an investor, the banks own capital is to purchase ant ABS assets and withdraw the risk capital according to the Basel agreement. Ant no longer needs to withdraw the risk capital according to the Basel agreement, otherwise it will be double withdrawn.

However, it said that if the capital preservation financing, investors buy ant ABS, according to the regulations, there is no need to withdraw risk capital, but the bank financing is actually just cashed. It is a bug that we have just cashed in but not withdrawn risk capital according to the Basel Accord.

But there is no cover up. From the regulatory to the industry, they all expressed the support of the Basel Accord on the requirements of banks own operating capital (capital) and risk assessment.

However, the controversial unlimited leverage of online lending is coming to an end, and the constraints come from the regulatory restrictions on the capital of small online loans and the proportion of joint loans.

On November 2, the peoples Bank of China and the China Banking and Insurance Regulatory Commission (CIRC) issued the Interim Measures for the management of online small loan business (Draft for comments) (referred to as the new regulations on small loans). One of the regulatory targets of the new regulations on small loans is to control leverage and break the strange appearance of making tens of billions of loans in real terms with lower capital.

The new regulation of small loan has an all-round pressure drop on the overall level of leverage: in a single joint loan, the contribution proportion of network small loan companies shall not be less than 30%. The leverage ratio of external financing is limited to 5 times, that is, the balance of non-standard financing (bank loans, shareholder loans, etc.) of small online loan companies shall not exceed one time of net assets; the balance of standardized financing (bonds, asset securitization products, etc.) shall not exceed 4 times of net assets. In other words, if the new regulations on small loans are implemented, ant and other bigtech will issue ABS statements, and the maximum scale shall not exceed 4 times of net assets. Xu Bei, Executive Deputy Secretary General of Guangdong Small Loan Association, believes that the approval and establishment of national (cross regional) Internet small loans, major changes, risk disposal, etc. are all collected by the CBRC, but the daily supervision may be transferred to provincial financial bureaus. The capital of 5 billion may be just a threshold, and there are various requirements, standards and other details on the way. Source: Yang Bin, editor in charge of economic report in the 21st century_ NF4368

The new regulation of small loan has an all-round pressure drop on the overall level of leverage: in a single joint loan, the contribution proportion of network small loan companies shall not be less than 30%. The leverage ratio of external financing is limited to 5 times, that is, the balance of non-standard financing (bank loans, shareholder loans, etc.) of small online loan companies shall not exceed one time of net assets; the balance of standardized financing (bonds, asset securitization products, etc.) shall not exceed 4 times of net assets.

In other words, if the new regulations on small loans are implemented, ant and other bigtech will issue ABS statements, and the maximum scale shall not exceed 4 times of net assets.

Xu Bei, Executive Deputy Secretary General of Guangdong Small Loan Association, believes that the approval and establishment of national (cross regional) Internet small loans, major changes, risk disposal, etc. are all collected by the CBRC, but the daily supervision may be transferred to provincial financial bureaus. The capital of 5 billion may be just a threshold, and there are various requirements, standards and other details on the way.