NHA MBS
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Regulatory Landscape: OSFI, CMHC and Canadian Securitization
Canada’s securitization market operates within a distinct regulatory framework involving multiple agencies. The Office of the Superintendent of Financial Institutions (OSFI) regulates banks and sets capital rules; the Canada Mortgage and Housing Corporation (CMHC) administers public securitization programs (NHA MBS and CMB) and provides mortgage insurance; provincial securities regulators oversee disclosure and investor protection. Why is…
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Consumer Loan Securitization: Credit Cards, HELOCs and More
Beyond mortgages and auto loans, securitization in Canada encompasses a range of consumer receivables: credit card balances, home‑equity lines of credit (HELOCs), personal loans and equipment leases. These assets support both short‑term financing (asset‑backed commercial paper, or ABCP) and term asset‑backed securities (ABS). While the market is smaller than in the United States, it plays…
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Mortgage‑Backed Securities in Canada: Private RMBS vs. NHA MBS
Introduction Mortgage‑backed securities (MBS) transform pools of mortgages into tradable bonds. In Canada, the market is dominated by the National Housing Act Mortgage‑Backed Securities (NHA MBS) program and the associated Canada Mortgage Bonds (CMB) program, both administered by the Canada Mortgage and Housing Corporation (CMHC). Private‑label residential mortgage‑backed securities (RMBS) exist but are rare. The distinction…
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Canada’s Auto Loan and Lease Securitization: Market Trends and Outlook
Auto loans and leases have long been a staple of Canadian asset‑backed securities (ABS). They provide funding to captive finance companies of auto manufacturers, banks and independent lenders while allowing investors to gain exposure to diversified pools of consumer receivables. The Canadian auto market has weathered multiple cycles, including the pandemic and supply shortages, thanks…
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Non-Bank Financial Intermediation and Private Credit in Canada
Canada’s financial system includes a sizeable non-bank financial intermediation (NBFI) sector – asset-based finance firms, leasing companies, and other specialized lenders – that complements traditional banks. According to the latest Bank of Canada data cited in 2025, Canadian NBFIs held about $12.8 trillion in assets at the end of 2023, up 5.7% from $12.1 trillion in 2022,…
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Credit, Yield, Liquidity, and Trust: How Investors Read Financial Assets
When I evaluate a financial asset – whether a corporate bond, a mortgage-backed security, or any structured product – I always consider four fundamentals: credit quality, yield, liquidity, and trust in the issuer/structure. These are intertwined factors that determine an asset’s attractiveness. Investors essentially price a bond based on the credit risk of the collateral, the…