(2) Legal risk: Although the original intention of legal letters and legal opinions is to eliminate external risk factors, sometimes the ambiguity of the law and the change of the terms themselves often become risk factors in the whole transaction process. In fact, in the process of asset securitization, legal risks always accompany and play a key role.
(3) Financial risk: Asset securitization is the peak of financial development, representing the perfect balance of performance, technology and structural skills. If any one factor fails, the whole transaction may be at risk. We call this kind of risk financial management risk, which mainly includes participants' failure to trade according to the agreement and equipment's failure to operate according to the requirements, such as computer failure and trading mechanism failure.
(4) Risk of downgrade: It has been confirmed from the existing examples of securitization that asset securitization is particularly vulnerable to downgrade, because the basis of asset securitization transactions contains many complex and diverse factors. If one of the factors deteriorates, the whole level of securities issuance will be in danger, which will have a huge impact on the market.
In addition to the above risks, there are some other risks, such as policy risks, property and accident risks, invalidation of contract agreements or securities, dependence on experts, etc. All these risks are not independent of each other, but interrelated. The influence and possibility of these securitization risks vary with different transactions. Therefore, investors must identify these risks, analyze their scale, study methods to reduce risks, and correctly estimate the effectiveness of those methods to reduce risks.