Pricing quantitative model design of distribution network assets REITs products and ABS products

Abstract

Abstract In recent years, the development of asset securitization in China has maintained a rapid growth pattern. The raised funds will be used to support enterprises in power grids or related industrial chains to obtain financial equivalent services. Reasonable pricing of distribution network assets REITs, ABS products and other financial products related to distribution network assets is an important auxiliary means to establish asset guarantee. The research of quantitative distribution network asset valuation model provides a good theoretical and working support for solving the reasonable pricing problem of distribution network assets. This paper will focus on the theoretical basis and related methods of quantitative model design for REITs products and ABS products from the perspective of distribution network assets. The results show that asset prices fluctuate at the 1% level for every 1% change in default rate when the prepayment rate is unchanged. The results show that the price of ABS products is more sensitive to the change of prepayment rate.