There are different risk control measures according to different products, mainly including mortgage, pledge, guarantee and structured design. Some products use only one risk control measure, while others use multiple risk control measures at the same time.
(1) Mortgage or pledge: the financier mortgages or pledges his movable or immovable property (real estate, equity, etc.). ) to the trust company. If the financier fails to pay the principal and income of the trust product on time, the trust company can auction the mortgaged or pledged property to protect the interests of investors;
(2) Guarantee: If there is no mortgage (or pledge) or the mortgage rate is relatively high, the trust company will often ask the financier to provide corresponding guarantee for the trust property. For example, guarantee company guarantee, third-party guarantee (parent company or affiliated company of the financing party), unlimited joint guarantee of enterprise legal person, etc. ;
(3) Structured design: The so-called structured design is to distribute the trust income rights in different levels, so that investors who buy priority can enjoy the priority income rights, and investors who buy secondary and inferior levels can enjoy the inferior income rights. In fixed-income trust wealth management products, inferior investment is generally invested by the financier. After the trust expires, the balance of investment income, expected income and related expenses after priority beneficiaries's priority principal all belong to the inferior beneficiary; If there is investment risk, it should be borne by inferior investors first;
(4) Take real estate trust as an example: for real estate trust loans, the risk control measures are generally mortgage and guarantee of land or existing houses; In real estate equity investment, risk control measures are generally trust holding, equity pledge, stationing personnel, monitoring funds, repurchase arrangements, etc.