Protectionism, tariffs and trade wars
Free trade means countries can exchange goods and services without restrictions, helping everyone access what they need and make money selling what they don’t. Humans figured out the value of…
Browse Archives By:
What’s negative equity?
When you get a loan to help you buy a car, it’s important to understand what you’re signing up for. If you think you can just keep trading in cars…
What causes financial bubbles?
Listen to our podcast episode on this topic, “What are financial bubbles and panics?” A “financial bubble” is an increase in the price of a financial asset leading to a…
‘Fake Flows’ are bloating Canadian ETF value
The turf war to convince investors about the value of upstart Exchange Traded Fund (ETF) industry over traditional mutual fund providers is getting increasingly muddled by double counting or “fake…
CDOR vs CORRA – who should get the final rose?
It’s the final selection, and our bachelorette has given her two last roses to suitors CDOR and CORRA.
At first glance, the two contestants likely to propose didn’t seem that different – both were Canadian-dollar based variable benchmarks used to price everything from consumer loans to floating rate notes, variable mortgage-backed securities and asset swaps.
But as the season went on, we learned there was more to these dashing suitors than we originally thought – and a mid-season plot twist led to a scandal that lit up Twitter for days.
Will the bachelorette accept a proposal from CDOR, who was the fan favourite before rumours of a cheating scandal, or will she choose earnest CORRA, whose character remains untested? Can she move past the LIBOR heartbreak, and find true love at last?
Before we get to the final rose, let’s look back at the bachelors looking to win our girl’s heart:
The bad boy/fan favourite: CDOR
What’s LIBOR?
There are various key benchmarks that banks and other financial institutions use to figure out the rate at which they should lend money. In the U.S. and Europe, one of…
