The performance of all the major asset types remains strong and stable in the Canadian asset-backed commercial paper (ABCP) market, says a new report from Moody’s Investors Service.
The rating agency’s report is the first of a new quarterly publication focusing on the Canadian market. “The quarterly report on Canadian ABCP offers a snapshot of the market focusing on the composition and activity of each conduit during the relevant quarter,” said Moody’s vice president and senior credit officer, Lisa Singman.
In the new quarterly report, Moody’s says, that of the new transactions added to the Canadian ABCP programs in the fourth quarter of 2012, 40% were used to finance residential mortgages, 34% financed auto loans and lease receivables and 24% financed trade receivables. Residential mortgages also made up 95% of the asset additions/increases by existing sellers. Outstanding issuance has remained steady over the past year, averaging $27.8 billion, it notes.
At the same time, Moody’s also announced the launch of a new web page dedicated to Canadian structured finance. The new page provides expanded ratings and research information for Canadian ABCP, asset-backed securities, commercial mortgage-backed securities, covered bonds and residential mortgage-backed securities.