Study About Asset Securitization on the Basis of Perfect Market

In the viewpoint of perfect market, compared with other financial instruments, asset securitization has the advantage in the transparent information and correct pricing. So asset securitization has the speicial function and meaning in the process of financial deepening of developing countries. This paper, from the point of view of perfect market, studies the constraint of market condition, mostly focuses the effects of adverse selection and moral hazard on asset securitization, and puts forward the basical model of asset securitization with the basis of research conclusion. The most important contribution of the paper is to design a pattern or approach of asset securitization for practice.