Staff working papers - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T12:40:37+00:00The “Too Big to Fail” Subsidy in Canada: Some Estimates
https://www.bankofcanada.ca/2018/02/staff-working-paper-2018-9/
Implicit government guarantees of banking-sector liabilities reduce market discipline by private sector stakeholders and temper the risk sensitivity of funding costs. This potentially increases the likelihood of bailouts from taxpayers, especially in the absence of effective resolution frameworks.2018-02-21T10:58:53+00:00enThe “Too Big to Fail” Subsidy in Canada: Some Estimates2018-02-21Financial institutionsFinancial stabilityStaff Working Paper 2018-9https://www.bankofcanada.ca/wp-content/uploads/2018/02/swp2018-9.pdfThe “Too Big to Fail” Subsidy in Canada: Some EstimatesPatricia Palhau MoraFebruary 2018GG1G13G2G21G28High-Frequency Trading and Institutional Trading Costs
https://www.bankofcanada.ca/2018/02/staff-working-paper-2018-8/
Using data on Canadian bond futures, we examine how high-frequency traders (HFTs) interact with institutions building large positions. In contrast to recent findings, we find HFTs in the data act as small-sized liquidity suppliers, and we reject the hypothesis that they engage in back running, a predatory trading strategy.2018-02-09T12:17:58+00:00enHigh-Frequency Trading and Institutional Trading Costs2018-02-09Financial marketsFinancial system regulation and policiesMarket structure and pricingStaff Working Paper 2018-8https://www.bankofcanada.ca/wp-content/uploads/2018/02/swp2018-8.pdfHigh-Frequency Trading and Institutional Trading CostsMarie ChenCorey GarriottFebruary 2018GG1G14G2G20LL1L10Adverse Selection with Heterogeneously Informed Agents
https://www.bankofcanada.ca/2018/02/staff-working-paper-2018-7/
A model of over-the-counter markets is proposed. Some asset buyers are informed in that they can identify high quality assets. Heterogeneous sellers with private information choose what type of buyers they want to trade with.2018-02-08T07:38:17+00:00enAdverse Selection with Heterogeneously Informed Agents2018-02-08Economic modelsFinancial marketsFinancial stabilityFinancial system regulation and policiesMarket structure and pricingStaff Working Paper 2018-7https://www.bankofcanada.ca/wp-content/uploads/2018/02/swp2018-7.pdfAdverse Selection with Heterogeneously Informed AgentsMohammad DavoodalhosseiniFebruary 2018DD4D40D8D82D83GG0G01G1G10G2G20Home Equity Extraction and the Boom-Bust Cycle in Consumption and Residential Investment
https://www.bankofcanada.ca/2018/02/staff-working-paper-2018-6/
The consumption boom-bust cycle in the 2000s coincided with large fluctuations in the volume of home equity borrowing. Contrary to conventional wisdom, I show that homeowners largely borrowed for residential investment and not consumption.2018-02-06T14:06:22+00:00enHome Equity Extraction and the Boom-Bust Cycle in Consumption and Residential Investment2018-02-06Credit and credit aggregatesEconomic modelsHousingStaff Working Paper 2018-6https://www.bankofcanada.ca/wp-content/uploads/2018/02/swp2018-6.pdfHome Equity Extraction and the Boom-Bust Cycle in Consumption and Residential InvestmentXiaoqing ZhouFebruary 2018DD1EE2E3