A Review on the Development of Bond Securitization in Taiwan ---The Experience of 2005 and 2006

• Main Authors: Tseng Chieh-Hsiung, 曾界雄
• Other Authors: Ahyee Lee
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/79619934024351241179

碩士 === 輔仁大學 === 金融研究所 === 95 === Abstract In 2004, the interest raise made by FED led to the withdrawal of market funds from bond funds. As a result of interest rate rising risk and the occurrence of the United Investment Trust event which causes a contagion effect; panic investors cause a mass redemption of the bond funds. Thereafter, close attention was paid to the liquidity of the investment position of the bond funds immediately. The Financial Supervisory Commission began to deliberate the countermeasures and developed the stripped bond products to increase the liquidity of the bond fund. However, the major solution to the liquidity problem in structured bonds of investment trust funds is the securitization. Between 2005 and 2006, owing to the authority's encouragement, numbers of Collaterized Bond Securitization have been dealt. A variety of products were developed and the techniquecs of securitization improved significantly, which shortened the learning curve of the securitization related financial industry. In addition, the quality and quantity of the asset securitization in Taiwan further stood out from other Asia countries. Through analyzing the cases during that period, we found that the following securitization issues needs to be addressed in Taiwan： 1.Whether the mjor players such as the originator, arranger, trustee and underwriter, still have enough motivation to join the market? 2.How to improve the second market of asset securitization? 3.Whether the arbitrage purpose could become the major motive to drive the asset securitization? 4.Whether the New Basel Agreement will affect the securitization transactions? 5.Whether it is necessary for further deregulation of asset securitization transactions in Taiwan? The suggestions for future development are as follows: 1.Relax regulatory restrictions on the underlying assets to have a broader range of qualified assets to be incorporated into the asset pool to achieve a better yield for securitization products; 2.To establish a securitization transaction review committee to improve the efficiency of the reviewing process; 3.To face the management asymmetry arising between the financial institutions; 4.Eestablishing a trading platform and a bidding system to increase the liquidity of the secondary market; 5.Establishing a reference index to be used as the investors' evaluation standard; 6.Providing a proper tax incentive for securitization products by making reference to the legislations and precedence in other jurisdictions; and 7.When facing Basel II, adopting the step by step approach to alleviate the influence that may occur.