DBRS Releases April 2012 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, 2012. The report provides detailed information on the $29.6 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 $29.6 billion, down 1.8% from the previous month’s outstanding amount of $30.1 billion. The decrease was a combination of runoff and the repayment of Series 2005-2 Notes within Canadian Credit Card Trust. Regular runoff amounted to $182 million.

April marked the second month in a row with zero new issuance. However, this trend will reverse in May, as several credit card issuers have recently come to the market for financing. There was one series of notes discontinued in April: Canadian Credit Card Trust Series 2005-2 Class A, Class B and Class C Notes.

Credit cards remain the dominant asset class within the ABS market, with 77.8% market share, up from 77.6% in March 2012. Auto loans and auto leases stood at 14.0%, down slightly from 14.5% in the previous month, followed by equipment finance, down slightly to 1.9% from 2.0% in March. Changes in the ABS market composition continue to favour consumer lending, with credit card and auto loan/lease programs accounting for approximately 91.8% of the ABS market, up from 79.6% year-over-year.

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