auto loan ABS
-
Technology & Innovation in Structured Finance: Tokenization and Data
Digital technology is reshaping structured finance. Blockchain‑based tokenization, artificial intelligence (AI) and advanced data analytics promise to modernize how loans are originated, securitized and traded. While Canada’s securitization market remains rooted in traditional structures, innovation is accelerating globally. Understanding these developments helps anticipate changes in funding, risk management and investor engagement. Traditional securitization transforms illiquid…
-
Covered Bonds vs. Securitization: Mortgage Funding in Canada
Covered bonds and securitization are two key funding tools for mortgage lenders. Both convert mortgage cash flows into marketable securities, but they differ fundamentally in structure, risk transfer and regulatory treatment. Covered bonds are full‑recourse obligations of the issuing bank backed by a pool of assets (the cover pool). Investors have dual recourse: they can…
-
Best Practices in Securitization Reporting and Transparency
Transparency is the lifeblood of securitization. Investors need timely, accurate information about collateral performance, structural triggers and cash‑flow projections. During the 2007–09 financial crisis, inadequate disclosure and complex structures undermined confidence in asset‑backed securities. In Canada, regulators and market participants have since implemented reforms to improve reporting and transparency. For dealers and investors, adopting best…
-
Insurers Moving into Riskier Assets ?
A recent Financial Times article, “Insurance sector is moving into riskier assets” by Lee Harris- published on 20th April 2026, highlights an important shift in global financial markets: insurance and annuity companies are increasingly moving policyholder savings into private credit, structured assets, asset-backed securities and other less liquid investments. The article explains that private capital…
-
Securitization as a Share of GDP: What the US, Canada and Europe Tell Us About Market Depth
Securitization is often discussed as a complex capital markets product, but at its core it answers a simple funding question: how can loans sitting on lender balance sheets be converted into investable securities for long-term investors? Banks, finance companies and other lenders originate assets such as mortgages, auto loans, credit card receivables, leases and consumer…