The commercial mortgage-backed market in Canada is poised to see some new issuance in the future, as one of two competing deals priced, giving way for the launch of new deals.

The Caisse de Depot N-45 First CMBS Issuer Corp. transaction priced last Thursday afternoon. The C$251 million transaction was led by Scotia Capital Markets.

The $213.3 million triple-A rated tranche priced at a spread of 78 basis points over the Government of Canada (GOC) 9% four-year bond, in line with price talk. The double-A rated tranche, sized at $5.6 million, priced at 120 basis points over the GOC 5.5% nine-year bond, while the single-A rated tranche priced at 160 over the same bond.

The pricing of this deal should be able to get a long-awaited deal from Solar Trust into the market. Postponed at least two weeks so the N-45 deal could be absorbed, the C$189.5 million offering could price this week. Word is that a large buyer wanted to make an inspection of the properties in the deal. TD Securities is serving as lead manager for the deal.

Merrill Lynch Mortgage Loans may soon be bringing a CMBS deal of its own to market, while rumors of a CMBS from Manulife Financial are still circulating.

On the asset-backed side, equity market turmoil sent ABS spreads in the country out three-to-five basis points last Wednesday, but came back in by the late morning as the market's tone improved and credit-enhanced triple-A rated ABS product was seen as a good flight to quality.

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