Dominion Bond Rating Service Ltd. reports that total of Canadian asset-backed securities outstanding increased 27.7%, or $130.2 billion, by the end of 2005 from $102.4 billion in 2004.
The volume of new Term ABS and asset-backed commercial paper issuances — backed by auto lease and loans receivables, collateralized debt obligations, credit cards, and residential mortgages — fuelled this increase, the ratings agency says. These four asset classes made up over 78.6% of all new transactions in 2005.
Next to auto lease and loans, CDOs, funded exclusively through multi-seller ABCP conduits, represented the largest volume of new deals the largest growing asset class as it made up for 13.5% of the total ABS asset composition as at the end of 2005, compared to 6.2% in 2004, DBRS reported.
The performance of the ABS market has been very stable, it says.
Canadian asset-based securities increase 27.7% in 2005: DBRS
Increase comes on the back of the four asset classes that made up almost 80% of all new transactions
- By: James Langton
- April 26, 2006 April 26, 2006
- 10:53
James Langton