Marc Larson is an Assistant Director in the Funds Management and Banking Department of the Bank of Canada. In this capacity, Marc leads the Debt Management Group who works closely with the Department of Finance on issues related to the government's domestic borrowing program. Previously, Marc was a Principal Analyst/Trader in the Market Analysis and Operations Group in the Financial Markets Department. Prior to joining the Bank of Canada in 2000, he worked in Debt Capital Markets in Toronto for 8 years. Marc earned a Bachelor of Commerce degree from the University of Ottawa in 1991 and holds the Chartered Financial Analyst designation from the CFA institute since 1998.
As the Government of Canada’s fiscal agent, the Bank of Canada provides strategic policy advice on the management of the government’s debt, in addition to being responsible for conducting debt-management operations. In this article, the authors review the evolution of the debt strategy over the past 20 years and outline the complex process of developing a sound strategy that balances various cost and risk considerations. This includes an examination of the tools and practices used to develop the new medium-term debt-management strategy, such as the modelling approach involved, market consultations and various debt-management metrics.Topics: Debt Management; Economic models