SECURITIZATION OF THE RISK OF ECO-DEFAULTS
【摘要】：正Our research is motivated by a project located in northern China with the name of Sino-Singapore Tianjin Eco-city.According to the official website of this project,eco has been specified with 26 indicators.For simplicity,we call these indicators eco-indicators. Undoubtedly,the eco-indicators represent a desirable life-quality(referred to as eco-quality). The whole benefit promised by eco-quality is conditional on the delivery of these eco-indicators.So it's natural for eco-quality beneficiaries(called eco-beneficiaries) to pay enough concern upon the delivery of such indicators,it makes sense only if these indicators are maintained not below some series of standards at all times.Any insufficiency of any indicator at any time is defined as a delivery default.A question comes,what can we do when being confronted with the risk of such defaults(which are called eco-defaults) ? This is just the starting point of our research.This paper proposes a new application of securitization which is called eco-default-risk securitization.The availability of such securitization will transform the maintenance of the qualities of Utilities and Public Services(UPS) into a completely interest-driven trade and then will improve the efficiency of remedies for the Quality Delivery Defaults of UPS.For purpose of the application of such transformation,we also discuss some issues about the pricing and tranching which are involved in the securitization.