After the near collapse of the Canadian securitization market in August 2007, 2010 saw a strong resurgence in term ABS issuance in Canada. Among other things, there were 16 public deals with combined total issuance of more than CAD$11 billion. There were also signs of renewed activity in the ABCP market with conduits taking on new deals with originators who had been largely frozen out of this market over the last few years. Overall, there is a general sense of optimism about the market and, as a result of both market forces and government action, it's fair to say that the Canadian securitization market is, if not perfectly well, at least comfortably on the road to recovery.
The public term deals in 2010 were largely auto (including retail and wholesale floorplan as well as fleet leasing assets) and credit card, with some equipment and mortgage deals as well. Four of the public deals were done (at least in part) through the government-sponsored Canadian Secured Credit Facility (CSCF - our equivalent of TALF), but the remaining 12 public deals were done with no government support, and even some of the CSCF deals had tranches that went to market investors rather than the government. All of this suggests growing investor confidence in this market, with 2011 likely to see at least as much issuance and perhaps even more originators and asset classes re-entering the Canadian market.