DBRS Morningstar Releases March 2020 Canadian Securitization Market Overview Report

DBRS Limited (DBRS Morningstar) released the Canadian Securitization Market Overview report for the month ended March 31, 2020. The report provides an overview of the total Canadian securitization market, including term asset-backed securities (term ABS), commercial mortgage-backed securities, and asset-backed commercial paper (ABCP).

The total amount outstanding in the Canadian securitization market, including private placements, was $95.4 billion as at March 31, 2020. Term ABS represented 55.1% of the total securitization market, followed by ABCP at 34.9%, and private placements at 10.0%.

The Canadian securitization market (excluding private placements) continued to be dominated by credit cards, which accounted for 38.1% of the total market. Auto-related transactions accounted for 26.0%, followed by residential mortgages at 14.0%, and commercial mortgages at 6.1%.

As of March 2020, the impact of the Coronavirus Disease (COVID-19) pandemic on portfolio performance had begun to materialize; however, the magnitude and extent of its impact is still uncertain. Although there has been some easing across Canada, social distancing measures remain largely in effect and many businesses remain closed.

Many households are in financial hardship after layoffs and lower income for hourly paid employees and individuals undergoing quarantine. The Bank of Canada, the Government of Canada, and the Office of Superintendent of Financial Institutions have announced several economic measures to help stabilize the economy and to help Canadians affected by the outbreak. Some measures will support liquidity in the financial markets and continued access to financing, while other measures will provide financial support to cash-strapped businesses and households affected by the coronavirus pandemic.

The outstanding ABS and ABCP notes are well-enhanced as of March 2020. DBRS Morningstar will continue to closely monitor the performance of all Canadian structured finance transactions and provide updates to the market.

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

The report is available at www.dbrsmorningstar.com.

For more information on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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