Why Canada may need to revisit term Corra methodology
Break from US guidance benefits dealers but some futures inputs underpinning term rate are in short supply
![](/sites/default/files/styles/landscape_750_463/public/2024-02/Canada%27s-smooth-benchmark-transition.jpg.webp?h=6fe0d48a&itok=xzG_abfZ)
When Canada began the process of reforming its legacy interest rate benchmark – the Canadian dollar offered rate, or CDOR – it was widely expected to follow the blueprint used to transition the US market away from Libor.
And it has – with one major twist.
The most striking difference is the official acceptance of interdealer trading in derivatives referencing a term version of the replacement risk-free rate – the Canadian overnight repo rate average, or Corra.
The US authorities placed strict
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