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$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Tota
l $ S
ecu
riti
zed
(b
illio
ns)
Canadian Conduit Lender Loan Origination and Timeline
Total Securitized (billions) $0.18 $0.69 $1.30 $1.60 $2.10 $3.30 $2.50 $3.30 $5.40 $3.60 $0.00
Merrill Lynch
CIBC
RBC
TD
First National
GE
GMAC (Capmark)
Casisse de Depot
Credit Suisse/Column
Collier International
La Salle Bank
/
CMBS Update
February 2014
CMBS Market Context 2007 - 2008
2
50
60
70
80
90
100
110
120
130
140
150
Jan-07 Feb-07 Apr-07 May-07 Jun-07 Jul-07 Sep-07 … Oct-08
bp
s 10 year AAA spreads 2007-2008
No bids
/
CMBS Update
February 2014
CMBS Market Context Pre-Crisis
3
10 year AAA CMBS spreads trended down as issuance increased to 2006 peak
0
20
40
60
80
100
120
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
1999 2000 2001 2002 2003 2004 2005 2006
bp
s
Mill
ion
s
Issuance 10 YR Spread
CMBS Delinquency Comparison
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Canada Delinquency U.S. Delinquency
4
Loss Comparison CMBS vs. Life Co Commercial Mortgages
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
US CMBS CDN CMBS ACLI Commercial Mortgages
5
Debt Service Coverage
1.20
1.30
1.40
1.50
1.60
1.70
1.80
Debt Service Coverage Ratios
Canada US
Aggressive underwriting period in US CMBS
6
DBRS Rating Actions
2005 2006 2007 2008 2009 2010 2011 2012 2013
Upgraded 35 54 60 68 10 98 46 40 100
Discontinued – Repaid 16 11 0 13 14 24 30 59 89
Downgraded 0 0 0 3 0 11 4 1 2
0
10
20
30
40
50
60
70
80
90
100
110
Co
un
t o
f C
MB
S R
atin
g A
ctio
ns
7
Refinance Status of Canadian CMBS
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
Loan Balance Refinaced Late Never Refinanced8
Canadian CMBS Leverage
54.00%
56.00%
58.00%
60.00%
62.00%
64.00%
66.00%
68.00%
70.00%
72.00%
Loan-to-Value Ratio
Canada US
9
10
2011 2012 2013
Total Securitized (billion) $0.206 $0.489 $1.375
$0.000
$0.200
$0.400
$0.600
$0.800
$1.000
$1.200
$1.400
$1.600
Tota
l $ S
ecu
riti
zed
(b
illio
ns)
Canadian CMBS New Issuance
11
$0.206
$0.489
$1.375
$0.182
$0.688
$1.300
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
1998 2011 1999 2012 2000 2013
Year 1 Year 2 Year 3
Tota
l $ S
ecu
riti
zed
(b
illio
ns)
Canadian CMBS New Issuance
12
2011 2012 2013
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Tota
l $ S
ecu
riti
zed
(b
illio
ns)
Canadian Conduit Loan Origination Comparison
Old New
/
CMBS Update
February 2014
CMBS Market Context US versus Canada
13
Post-recession issuance records1
Canada: $1.4 billion (33% of peak)
US: $90 billion (38% of peak)
1Commercial Mortgage Alert, CMLS Financial
2Bloomberg
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Annual CMBS Issuance as % of Peak Volume2
US Issuance Canada Issuance
Upcoming Maturities
0
50
100
150
200
250
300
350
400
450
500
550
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
2014 2015 2016 2017 2018 2019 2020
Loan
Bal
ance
No
. of
Loan
s
Balance at Maturity No. of Loans14
