Interest in Canadian Credit Card ABS Picks Up in U.S.

According to a recent Asset Securitization Report article, Canadian banks are increasingly crossing the border to fund their credit card programs to take advantage of lower borrowing costs in the larger U.S. market.

Last year, there were 15 deals issued in U.S. dollars by Canadian card companies, totaling $7.33 billion, according to Moody‘s. This figure is up from $2.55 billion in 2015 and reflects a rising U.S. interest in Canadian credit card receivables.

“Financially sound sponsors also have a greater ability to prevent their transactions from entering early amortization, and are better positioned to provide support through increasing the amount of [credit enhancement] via the addition or expansion of subordinate tranches, among other options,” adds Moody’s.

To learn more about Canadian securitization, don‘t forget to attend SFIG Canada 2017 from June 26-27th. This conference will bring together all the key stakeholders in the Canadian structured finance market. Registration may be found here.

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