While the US market appears to have peaked, securitization
in Canada continues to experience significant growth. If you
were looking for two words to describe the present state of
Canadian securitization, they would be growth and change.
Outstanding asset-backed commercial paper grew from C$41
billion ($27.2 billion) at the end of 1998 to C$53 billion at
the end of 1999 - and represented almost half of all
non-government Canadian short-term debt. Outstanding term
asset-backed securities (ABS) grew from C$8 billion to C$13
billion, a record-breaking increase. All in all, Canadian ABS
has increased at an annual rate of 56% since October 1997.
As to NHA mortgage-backed securities (MBS), 1999 saw an all
time record of C$13 billion in new issuance, up 42% over the
previous year. Outstanding MBS volume at year-end totalled C$28
billion, up from C$20 billion at the end of 1998.