SFA Research Corner: Mind the Gap: Cessation of CDOR Presents an Opportunity for Canadian ABCP

On June 28, 2024, the Canadian Dollar Offered Rate (CDOR) will cease, ending the Bankers’ Acceptance lending model. This leaves a C$80 billion gap in money market options for Canadian investors. Canadian bank-sponsored Asset-Backed Commercial Paper, currently valued at C$48 billion, emerges as a potential substitute to address a portion of this gap.