The Canadian term structured finance market ended 2007 feeling a clear knock-on effect from the turmoil in the global credit markets, says a report published today by Standard & Poor’s Ratings Services.

Last year, issuance was down across all asset classes in the Canadian structured finance market.

The report, “Year In Review: 2007 Proved To Be A Mixed Bag For The Canadian Structured Finance Market,” notes that total issuance for 2007 was $7.11 billion, down 60.94% from $18.21 billion a year earlier.

The most significant story for 2007 was the dislocation in the Canadian nonbank ABCP market and the resulting movement away from general market disruption triggers that were the norm in Canadian ABCP liquidity agreements.

Looking ahead, issuance volumes will likely drop considerably from the pace of the past few years, with potential issuance in 2008 likely to be below the issuance levels of 2003 at about $1.5 billion.