Leverage refers to buying bonds on margin. Long Canadas are marginable at five per cent for investment dealers and typically 10 per cent for individuals. Amortization refers to the process where, as time passes, your fixed income investment moves inexorably to its face value or maturing value. Amortization is also known as accretion. Call loan is also called overnight money.
Dealers post their inventory as collateral.
This rate is every bit as important as the bank rate. The Bank of Canada influences money market rates by altering the amount of cash in the system. Jobbers are approved money market dealers who MUST bid for each week's treasury bill auction. Balloon is the maturing principal of a bond issue.