Euro Short-Term Rate (€STR): The EU’s Benchmark Interest Rate
What is €STR? The Euro Short-Term Rate (€STR or ESTER) is the European Union’s official overnight benchmark interest rate. It reflects the average rate at which banks and financial institutions borrow euros overnight on an unsecured basis, meaning no collateral is used. Published by the European Central Bank (ECB), €STR provides a consistent reference point...
Canadian Overnight Repo Rate Average (CORRA)
What is CORRA? The Canadian Overnight Repo Rate Average (CORRA) is Canada’s primary risk-free interest rate benchmark. It reflects the cost of overnight borrowing through repurchase agreements (repos) secured by Government of Canada securities. In June 2024, CORRA officially replaced the Canadian Dollar Offered Rate (CDOR) as Canada’s main reference rate for derivatives and other...
CFI & DataCamp Webinar: How Python Skills Can Build Your Career in Finance
Ryan Spendelow, Senior VP, Training & Curriculum, Corporate Finance Institute (CFI) Carl Rosseel, Director of Technology Alliances, DataCamp In a finance world driven by automation, data, and evolving career paths, Python is no longer just “nice to have”—it’s fast becoming essential. In this insightful conversation, Ryan Spendelow from CFI and Carl Rosseel from DataCamp unpack...
Collateralized Mortgage Obligations (CMOs): A Beginner’s Guide
What is a Collateralized Mortgage Obligation? A Collateralized Mortgage Obligation (CMO) is a structured fixed income product that repackages mortgage-backed securities (MBS) into multiple tranches. Each tranche offers a different level of risk, return, and maturity, allowing investors to better manage cash flows and prepayment risk. Since their creation in 1983, CMOs have become an...
Counterparty Credit Risk Explained: Definition, Examples, and Management Strategies
What is Counterparty Credit Risk? Counterparty credit risk (CCR) is a major concern in financial markets, affecting transactions in trading, derivatives, and securities. It represents the likelihood that the other party in a financial transaction will default or fail to fulfill financial obligations before the contract is settled. If one party defaults, the other may face significant financial...
