Designing Credit Card ABS in Taiwan

• Main Authors: 趙振宏, Chao, Chen-Hung
• Language: 英文
• Published: 國立政治大學
• Subjects: 證券化; Credit Card ABS
• Online Access: http://thesis.lib.nccu.edu.tw/cgi-bin/cdrfb3/gsweb.cgi?o=dstdcdr&i=sid=%22G0091258001%22.

Three decades ago, the first securitization product was introduced to the investing public in the United States by federal agencies and similar products showed up in Taiwan in 2002. It is a brand new concept for investors in Taiwan and material differences between the west and the east should be considered thoroughly. This research focus on must-knows and critical techniques of securitization of credit card receivables in Taiwan. The researcher discovered that, the competitiveness of originators is one crucial factor for credit card securitization to survive during serious conditions. Without the ability to refill declining credit card receivables in asset pool of securitization transactions, early amortization will be triggered and that’s where case closed. Cash flow forecasting model is another important player in credit card securitization. By predicting future cash flows needed and generated, originators can reap the most profit. However, the variables in this magic model are not easy to find. Through multiple analyses and one simulated case, the researcher found that the most important factors are yield rate, loss rate, repurchase rate, and monthly payment rate. === Three decades ago, the first securitization product was introduced to the investing public in the United States by federal agencies and similar products showed up in Taiwan in 2002. It is a brand new concept for investors in Taiwan and material differences between the west and the east should be considered thoroughly. This research focus on must-knows and critical techniques of securitization of credit card receivables in Taiwan. The researcher discovered that, the competitiveness of originators is one crucial factor for credit card securitization to survive during serious conditions. Without the ability to refill declining credit card receivables in asset pool of securitization transactions, early amortization will be triggered and that’s where case closed. Cash flow forecasting model is another important player in credit card securitization. By predicting future cash flows needed and generated, originators can reap the most profit. However, the variables in this magic model are not easy to find. Through multiple analyses and one simulated case, the researcher found that the most important factors are yield rate, loss rate, repurchase rate, and monthly payment rate.