Receivables underlying asset-backed securitizations in Canada continue to perform “extremely well” despite a 6% year-over-year increase in consumer bankruptcy filings, according to a recent DBRS report.
In fact, a first quarter Consumer Credit Report by DBRS showed cumulative credit losses in auto loan securitizations remained low at 0.09% for the 2018 vintage.
Through July, the Canadian securitization market totaled $95.4 billion, according to DBRS’s July 2019 Canadian Securitization Market Overview report published Monday. Auto-related transactions accounted for 27.5% of the market, while credit cards grabbed 38.4% market share.
Credit quality for the underlying collateral across asset classes remains strong, according to the report, despite “the high level of household indebtedness [which] remains a significant cause for concern as it leaves Canadian households more vulnerable to cash-flow shortages.” That said, outstanding notes are “enhanced sufficiently” to withstand volatility, the report added.
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.Like This Post