Bankers’ Acceptance (BA)

A bankers’ acceptance (BA) is a short-term credit investment created by a non-financial firm and guaranteed by a bank.

BA’s are frequently used to finance the lending activity of Canadian banks.

30-day bankers acceptance rates are also correlated with variable-rate mortgage discounts since lenders factor in BA yields when setting variable pricing.

 

Source: CanadianMortgageTrends.com