DBRS Releases April Canadian Securitization Market Overview Report
DBRS (June 28, 2010)
DBRS has today released the Canadian Securitization Market Overview report for the month ended April 30, 2010. The report provides an overview of the total Canadian securitization market, which includes asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), asset-backed commercial paper (ABCP) and structured notes.
During the month of April 2010, total outstanding amounts for debt issued by Non-Affected Trusts declined by $696.1 million month-over-month to $75.9 billion. Total structured floating-rate notes (FRNs), including notes issued by Master Asset Vehicles I, II and III, also decreased by $65.0 million to $23.7 billion. Private placements stood at $4.0 billion, down by $216.7 million from March. The total market size was reduced by $1.0 billion for the month. On a year-over-year basis, the market has shrunk by $20.1 billion, or 16.2%.
In total, there were six new issuances in the Non-Affected Trust market (excluding CMBS) and all six were in auto-related consumer obligations: two in ABS and four new transactions in the ABCP market. These issuances increased this industry's presence in the Canadian securitization market (excluding structured FRNs and private placements, but including CMBS) to 13.6% from 12.5% the previous month, with auto loans representing 10.4% of the market, and auto leases, 3.2%.
Auto-related consumer obligations continue to rank fourth in terms of market share, after credit cards and secured lines of credit, commercial mortgages and residential mortgages. Credit cards and
secured lines of credit remains the largest asset class at 38.0% of the market, with credit cards at 29.0% and secured lines of credit at 9.0%. Commercial mortgages is the second largest asset class, accounting for 21.2% of the market; and residential mortgages remains in third place at 14.7%, with conventional mortgages at 9.4%, insured mortgages at 3.1% and non-conventional mortgages at 2.2%.