DBRS Releases April 2011 Monthly Canadian ABS Report

DBRS has today released its Monthly Canadian ABS Report, which provides an overview of the Canadian term asset-backed securities (ABS) market for the month ending April 30, 2011. The report provides detailed information on the $32.1 billion market, with disclosure on issuance volumes, asset composition and 12-month transaction performance histories. New transactions and rating actions that took place during and after the reporting period are also summarized in the report.

The total outstanding amount in the Canadian ABS market was $32.1 billion, up by 6.1% from the previous month’s outstanding amount of $30.2 billion. This increase is due to issuances from Golden Credit Card Trust Series 2011-1 for $1.26 billion and Master Credit Card Trust Series 2011-1 and 2011-2 for a total of $1.28 billion. Due to the large issuances this month, cumulative ABS issuances, year to date, were above the April 2010 levels.

In April 2011, the total amount of paid-off notes was $461.5 million, the largest being CNH Capital Canada Wholesale Trust 2009-1 at $325 million. The regular runoff amounted to $239.9 million.

The ABS market has seen several large issuances from credit card programs over the course of the year, in particular from CARDS II Trust, Master Credit Card Trust and Golden Credit Card Trust in an aggregate amount of $4.2 billion. Although some of the issuance was used to refinance scheduled maturities, the majority was used to finance portfolio growth. DBRS expects this segment to continue to be active throughout the rest of the year.

Credit cards remained the dominant asset class, with 64.8% market share, up from 60.3% in March 2011. Auto loans and auto leases stood at 16.0%, down from 17.6% the previous month, followed by floorplan financing, which decreased to 7.7% from 9.2% in March 2011.

The April 2011 Monthly Canadian ABS Report also includes access to the new DBRS enhanced structured finance surveillance reports. Its enhanced features – including detailed historical data for virtually all Canadian ABS transactions, which allows for trend analysis and benchmarking of specific asset classes – are available on a subscription basis. For a limited time, however, a select number of transactions have been made available on a trial basis. The highlighted transactions in the table of contents of the report link directly to the enhanced portion of the report.

Note:
All figures are in Canadian dollars unless otherwise noted.

The full report is available by clicking on the link below or by contacting us at info@dbrs.com.