BANFF, Alberta-Canada Mortgage Bonds (CMB), Canada Mortgage Housing Corporation's (CMHC) brand new housing program launched last Monday, will have little impact on the Canadian asset-backed market, according to panelists at last week's ABS 2001 conference sponsored by Insight.

CMBs are semi-annual, fixed-rate, triple-A rated, bullet maturity bonds that carry a full government guarantee given through CMHC. These bonds will be issued via a special purpose trust called Canada Housing Trust (CHT), which was created specially for the program. According to CMHC, these bonds are expected to trade at a modest premium to Government of Canada issues.

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