What Is a Paper Asset?

An asset-backed note is a debt financing instrument. The note is supported by the predictable cash flow generated by a specific asset, and it is agreed to repay principal and interest within a certain period. Asset-backed notes are usually sold by large enterprises, financial institutions, or multiple SMEs to their trustees, which will generate stable cash flows in the future, and the trustees will use these assets as a basis to issue commercial papers to investors Sell in exchange for the required funds. The development of asset-backed notes in foreign countries is relatively mature, and its issuance process is similar to other asset securitization processes, that is, the promoters set up a Special Purpose Vehicles (SPV) to receivables, bank loans, credit cards Assets such as receivables are sold to SPV, and these assets are used by the SPV to publicly sell notes in the market.

Asset-backed notes

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Asset-backed notes

Since the 1980s, asset-backed notes have become an increasingly important part of private equity. Asset-backed notes are still in the early stage of pilot research in China, which was in 2010

A few days ago, the first three asset-backed notes were issued successfully, and asset-backed note products went online. This is another milestone of product innovation in China's debt capital market.

It is reported that these three notes were issued by Ningbo Urban Construction Investment Holding Co., Ltd., Nanjing Public Holdings (Group) Co., Ltd.,

Interbank codes: 081273001, 081273003, 081273002, 081273004, 1182175