For the Canadian structured finance market, 2013 may feel a lot like 2012. Asset-backed securities (ABS) issuance (excluding covered bonds and asset-backed commercial paper) was up 28.2% in 2012, to C$12.6 billion from C$9.8 billion in 2011, and will likely remain in the C$12.0 billion-C$13.0 billion range in 2013. Credit card ABS accounted for 75.6% of total issuance last year, or more than C$9.5 billion. Of that, approximately C$6.1 billion, or two-thirds of credit card ABS issuance from Canadian domiciled sellers, were cross-border transactions placed with U.S. investors--a trend we expect to continue. Auto and equipment ABS issuance, the next largest asset classes, declined to C$2.6 billion in 2012 from C$3.7 billion in 2011. However, we believe the acquisition of...
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