DBRS Releases August 2014 Canadian ABS and Enhanced ABS Reports

DBRS has today released the enhanced version of the Monthly Canadian ABS Report (the Enhanced ABS Report), in conjunction with the Monthly Canadian ABS Report.

The Enhanced ABS Report offers additional metrics, longer data series, definitions and charts that provide the user with both numeric and graphic presentations to allow for a quick review of the overall performance and trends for each transaction, as well as benchmarking of transactions within an asset class.

The Monthly Canadian ABS Report has links that allow the user to go from the table of contents or the individual transaction page to the corresponding Enhanced ABS Report for that particular issuance.

The total outstanding amount of the Canadian ABS market was $31.5 billion at the end of August 2014, down 0.5% from the previous month’s outstanding amount of $31.7 billion. This decrease was mainly a result of regular run-off, which amounted to $148.4 million. There were no new issuances or repayments in the month.

On September 18, 2014, DBRS issued a press release stating that it does not intend to make significant changes to its approach to rating Canadian credit cards, which considers various quantitative and qualitative factors and is due for annual review in November 2014.

As part of the surveillance process, DBRS also conducts monthly stress testing on all outstanding notes, with the severity of the tests commensurate with the ratings assigned. The results continue to indicate that simultaneous declines in yield and payment rates and increases in losses would not result in a failure of repayment on a timely basis.

Credit cards remain the largest asset class within the ABS market, comprising 71.4% of the market. Home equity lines of credit remain at 8.1%, followed by auto loans and leases at 6.3%.

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

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.