Corporate financings in the second half of 2007 took a step back as the late summer re-pricing of global credit risk reverberated through the Canadian markets, according to data gathered by the Investment Industry Association of Canada (IIAC).

The IIAC today released its review of Canada’s debt markets during 2007.

The report notes that Maple bond issuance accounted for only $4.9 billion, 18% of the $26.9 billion issued throughout the year.

Similarly, asset-backed securities, which have been on the rise for the past four years, slowed tremendously down 65% year over year.

Nevertheless, debt financings reached new heights in 2007. Total debt issuance soared to $205 billion, an increase of 10.7% year over year. And as financings accelerated, trading figures met the record reached in 2006.

“All in all, it was a strong year for the debt markets. However, looking out, the direction of interest rates will be downward and global economies show signs of lower than anticipated growth,” says Ian Russell, president and CEO, IIAC. “The level of debt financings will likely moderate this year,” adds Russell.