As the number of liquidity providers to Canadian asset-backed commercial programs becomes limited, the search for alternative liquidity sources is beginning to gain ground, experts said.

"There's a limited number of players that can effectively provide liquidity," said Greg Nelson, senior vice president of structured finance at Dominion Bond Rating Service. Though the limited supply of liquidity facilities has not reached a critical point, Nelson said that market players are currently looking to find alternative sources of liquidity because "they can see that someday that may happen and they don't want there to be constraints in their business, so they're being somewhat pro-active."

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