Winning the new financial era

Chapter 247 ABS Bonds
Zhang Yida looked at Hong Haibo, the general manager of the consumer finance and wealth management business group, and pouted at him.

Hong Haibo smiled lightly, and said: "Yongbei and Daibei have lent more than 200 billion yuan a year, and their asset quality performance is very stable, and the bad debt rate has been controlled within 1%.

At present, the source of funds for lending is half of the group's own funds and bank credit funds obtained for financing.

Our actions this year are: continue to expand capital cooperation channels, optimize capital structure, cooperate with trust companies and insurance companies, and try to issue the first phase of ABS bonds. "

Always relying on free funds to lend, the scale can easily reach the upper limit, so it is not sustainable for a long time.

The consumer finance and wealth management business group knows how to optimize the capital structure, which makes Zhang Yida very satisfied.

He commented: "You have done a very good job, you must learn to leverage and use other people's money to make money for us.

At this point, we have to learn from Leech Financial Services.

Whether it is to develop a trust plan, or obtain credit from a bank or an insurance company to carry out joint loans, we only need to issue 10%-20% of inferior funds or guarantee funds to leverage 5 times or even 10 times capital leverage.

We provide links such as customer acquisition, risk control review, and loan lending. Licensed financial institutions provide funds, and everyone can make money. This cooperation model can be maintained in the long run.

Eating alone is not a good behavior, and the cake is not big. "

Speaking of this, Zhang Yida looked at Hong Haibo and instructed: "Your task for 16 years is to expand the business as much as possible while controlling the quality of assets.

Moreover, the funding mechanism must continue to be optimized, and the contribution ratio of self-owned funds must be reduced to less than 20%. "

Hong Haibo nodded with a smile: "Leech Golden Clothes does have a set, we have to follow them.

If the bank does not change, we will change the bank. "

Zhang Yida didn't comment on this sentence. In his opinion, it was just a slogan.

Leech Financial has lived a good life in the past two years, using various means to evade supervision.

Leech has two small loan licenses, one small and micro loan license to operate Huabei, and one Shangcheng small loan license to operate Zaibei.

Both licenses are registered in Yuzhou, and the upper limit of leverage is 2.3 times, which means that the balance of various financing of small loan companies shall not exceed 2.3 times of the company's net capital.

The combined registered capital of Leech’s two small loan licenses is currently only 38 billion yuan, but it leveraged hundreds of billions of ABS funds, dozens of times the leverage, and counting the money is cramping.

Leech Financial has completed off-balance-sheet financing through the issuance of credit ABS, avoiding regulatory loopholes, and it is also very cunning. Chinese businessmen are first-class in exploiting loopholes.

The specific process of ABS issuance is: Ant Financial provides loans to Huabei/Jianbei users through its licensed small loan companies to form credit assets;
Then the credit assets are packaged and transferred to the special asset support plan SPV designed and managed by the securities company;

The securities company will carry out a structural design on the cash flow that will be generated by the asset pool in the future, and divide it into several levels such as priority, secondary and inferior;

Then the ABS bonds are listed on the exchange for issuance, and are subscribed by institutional or individual investors. The minimum investment is 100 million, and the number of people cannot exceed 200.

To some extent, it can be regarded as a large-scale mixed P2P, but the security is very high, and ABS bonds can only be issued after going through multiple links of review.

Moreover, the ABS initiator has to purchase inferior bonds that account for 5%-20% of the bond issuance scale.

It is equivalent to giving back to priority and secondary investors or institutions.When distributing income, priority is given to priority and secondary investors to meet their expected income, and then it is the turn of inferior investors;

When losing money, it is also the lower level first, and then the second level and the priority level.

However, Leech Financial has done a good job in risk control, and its asset quality is very stable, so it can't lose money even if it wants to.

After the assets are securitized, the loan balance of borrowing and Huabei will decrease, and the transfer of credit assets from on-balance sheet to off-balance sheet will be successfully completed, and the regulatory agency will not be able to control them...

After investors purchase ABS shares, the on-balance-sheet loans of Bianbei and Huabei are converted into cash, and the two small loan companies can continue to lend with sufficient cash flow back.

Lending forms new credit assets, and ABS can be issued again, and then the balance sheet is completed again.

This cycle goes on and on, and Leech Gold takes 38 billion and releases a credit balance of hundreds of billions...

The priority interest rate of ABS bonds is generally between 4% and 6%. Counting the secondary and inferior grades, the interest rate is only 8%.

The interest rates of Huabei and Borrowing are between 8% and 21%, with an average of about 15% to 16%.

The interest rate difference of seven or eight points, the lending volume of 3000 billion a year, and the revenue of [-] to [-] billion.

"Mr. Zhang~Mr. Zhang~"

Hong Haibo yelled several times before Zhang Yida came back to his senses, smiled awkwardly, and said, "I just wanted to go to Leech Gold Clothes."

"By the way, we have been preparing for the first issue of ABS bonds for several months. When will the issue begin?" Zhang Yida asked Hong Haibo again.

"Law firms, accounting firms, rating agencies, and evaluation agencies have all prepared materials and reported them together.

Now we are waiting for the review and approval from the Shanghai Stock Exchange. If it is soon, the road show can start this month. "

Hong Haibo went on to introduce: "Hanzhou Securities is responsible for the entire issuance of this issue of ABS, and Industrial and Commercial Bank of China is responsible for the custody of funds.

Named "Hanzhou Securities-Ruixiang Jinke Phase 1 Asset Support Special Plan", the total issuance scale is 10 billion yuan.

Among them, priority A grade accounts for 80%, the rating is AAA grade, and the coupon rate is 4.0%;

Priority B, which is actually secondary, is called priority B, accounting for 12.5%, rated as AA+, and with a coupon rate of 4.6%;

The inferior class accounts for 7.5%, which is subscribed by ourselves, without rating or setting expected yield. "

"Okay, hurry up, Leech Jinfu and the others have eaten all the unnecessary meat, and the soup didn't catch up with a bite."

Zhang Yida played with the pen in his hand, and put down such a sentence.

"Mr. Zhang, don't worry, just invest in our assets and funds, which are not inferior to Leech Financial Services. It will be a piece of cake in the market, and there is no shortage of investors."

"Okay, don't show off. Release the financial report of Leech Financial Services." Zhang Yida ordered again.

Hong Haibo released the PPT again, saying: "According to the agreement that Ari can share 37.5% of the pre-tax profits of Leech Financial Services, we can see the pre-tax profits of Leech Financial Services for the past two years through Ari's financial report.

2014年是57亿元，2015年四个季度分别是7.09亿、9.71亿、12.35亿、13.39亿元。

The total profit in 2015 was only 42 billion yuan, which was 2014 billion yuan less than that in 15.

Why is this happening?

The situation is actually similar to ours. Leech Financial Services is investing a lot in research and development, and increasing subsidies for mobile payment users. "

"We are different from them, their cash cow is a consumer finance business, and we are the seven major financial supermarkets.

Through this speculative financial report, we can see how vast a market consumer finance is.

Therefore, in the context of the slowdown in the growth of financial supermarkets, the consumer finance business will surely become an important growth engine for our group's revenue. "

Speaking of this, Zhang Yida reversed and said: "Of course, we must also pay attention to the technology business. I don't want to give the outside world the impression that Ruixiang is a financial company.

Just like Leech Financial Services, the income from the financial business can be said to be technical income.

It is to advertise itself as a technology company.

Technology companies have a price-earnings ratio of [-] to [-] times, while financial companies have a price-earnings ratio of [-] to [-] times. "

Everyone laughed. Everyone is an expert, so they naturally know the various tricks of Leech Golden Clothes.

"Lan Lan, please report on the operation of the overseas business group!"

As soon as Zhang Yida finished speaking, Lan Lan, who also served as the general manager of the overseas business group, stood up and said:
"At present, Ruixiang's mobile payment has landed in 5 countries, Toss in South Korea, PayPay in RB, GrabPay in Singapore, RPay in Indonesia, and BBPay in India.

India is the second most populous country in the world, and Indonesia is the fourth most populous country in the world.

The markets of these two countries are undoubtedly the largest.At the same time, RPay and BBPay are also the two joint venture companies with the largest shareholding and the strongest control.

I think we need to increase the resource tilt of these two companies. "

After she finished speaking, Zhang Yida said: "Okay, this year we have another important goal - Africa.

At present, I have already negotiated the investment in Transsion mobile phones.This mobile phone company is specifically aimed at the African market, accounting for 30% of the mobile phone market in Africa.

In the next step, we will cooperate with them on the pre-installed software of mobile APP.

Lan Lan, you can start thinking about organizing a team to be sent to Africa. "

"Africa, isn't it chaotic? War, disease, poverty... Is such a place suitable for promoting mobile payment?" Wang Lina asked her own question.

"Some countries in Africa are very chaotic, but there are also politically stable ones, such as Egypt and South Africa.

We enter from a safe country first, and expand outward a little bit. "

Zhang Yida was quite helpless, Africa was quite noisy, and there were not many safe countries.

"With the call of the Belt and Road Initiative, many domestic factory owners are going to Africa to open factories, and some are also engaged in trade.

If they can go, why can't we? "

Lan Lan stated very resolutely that the men present, including Zhang Yida, were convinced after hearing this, and they are ruthless characters.

"Let's start with the tourist market that China has traveled in the past, and make cross-border payments.

For local business, I suggest to develop steadily. "

Lin Zhenyang looked worried, and said again: "What I mean is that if any country is in chaos, all the initial investment will be in vain."

"I agree, try not to burn money in the early stage, or burn less money. If something happens, you can still afford the loss." Gu Panpan also expressed his opinion.

"Okay, I don't ask for results in a short time, let's plant a flag first. Ruixiang now needs globalization to enhance our intrinsic value."

Zhang Yida didn't expect any success in the African market, so he just needed to occupy a mountain first.

"By the way, on the industrial fund side, if there are invested companies that want to sell old stocks, we will also sell some appropriately."

Lan Lan was a little puzzled by Zhang Yida's approach, and asked, "Why? Don't wait any longer?"

"In recent years, the equity investment market has been too prosperous. When it is prosperous, there will be many bubbles. It is not surprising that the valuations of the primary market and the secondary market are reversed.

We also need to diversify the investment risk. "

Of course, Zhang Yida would not tell her that unicorns would frequently go public and break their fortunes in the next few years, so he just found a reason to diversify investment risks.

"Well, if there is a suitable opportunity, I will make a move and return the funds appropriately."

Speaking of this, Lan Lan said again with a troubled face: "Mr. Zhang, we invested 3.3 million U.S. dollars in Laizanda, isn't it too much?
We, Ruixiang, do not set foot in the e-commerce industry, so there is no need to play such a big game, right? "

　Thanks: Z, I will turn over your brand A tonight, we will be in the same boat at night, Gougougoudiandian, book friend 160701112238796, Qingcheng is simple, waiting for the reward of book friends!Thank you very much!
　　
　
(End of this chapter)