collateral analysis
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Securitized Term Auto Receivables Trust (START): Mechanics, Canadian Market Context, and Performance
Securitized Term Auto Receivables Trusts (STARTs) are Canadian auto-loan asset-backed securities (ABS) structured as true-sale trusts. In a START, pools of auto loans (the collateral) are transferred into a special-purpose vehicle (SPV) that issues multiple tranches of notes (senior/class A through mezzanine and subordinated classes, often plus a retained residual) to investors. Monthly cash flows…
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Data Center ABS: Raising Capital for the AI Era
The AI boom is driving explosive demand for data center capacity. To fund new build-outs, data center owners are increasingly using asset-backed securities (ABS). By pooling data center leases or revenues into a special-purpose vehicle (SPV), issuers can sell bonds to institutional investors and recycle the proceeds into construction or acquisitions. ABS deals can unlock…
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Canada’s Financial System 2026: Stability Amid Emerging Risks
Executive Summary: The Bank of Canada’s 2026 Financial Stability Report (FSR) released on May 28, 2026, finds that the country’s financial system remains broadly resilient, even as asset prices and debt levels have risen and global shocks loom. High household debt and rich equity and bond valuations leave parts of the market vulnerable to a…
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The AI Opportunity Is Not Just for AI Companies
When investors talk about artificial intelligence, the conversation usually revolves around chip designers, cloud providers, and software platforms. Yet some of the most interesting opportunities may be emerging in places few expected a few years ago. Advanced Energy Industries is one example. For decades, the company operated in markets that most investors would consider mature:…