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

article by Structured Finance Association

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.