Interest Rates: A Primer (Video)

Video transcript

Simon Williams (00:05): In the past 18 months, interest rates have become increasingly topical and relevant to consumers, businesses and banks alike. As everyone grapples with what has been the fastest pace of interest rate hikes in modern history. This has been punctuated by headlines of the recent Silicon Valley Bank collapse, and in the Canadian market, we are seeing a move from all CDOR-based products, whether loans, derivatives, or structured finance instruments from CDOR, which is an interbank rate to a new risk-free rate that almost nobody has heard of called CORRA.

This is all happening at an order of magnitude of $20 trillion in financial instruments moving to the new rate on one day at the end of June, next year. My name is Simon Williams. I'm counsel in Toronto office working in the lending structured finance and derivatives group. In this video, I'm going to cover some of the fundamentals of an interest rate and what goes into an