Posts

• August 2, 2024

  Market Participants Survey—Second Quarter of 2024

  The Market Participants Survey results are based on questionnaire responses from about 30 financial market participants.

  Content Type(s): Publications, Market Participants Survey

• Foreign exchange risk premiums and global currency factors

  Staff Analytical Note 2024-20 Ingomar Krohn, Mariel Yacolca Maguiña

  Global currency risk factors continue to explain a large share of the variation in the Canadian dollar during the period following the 2008–09 global financial crisis. We show that they are also systematically important for risk premiums, and only in recent months has the role of idiosyncratic country-specific risks grown.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Asset pricing, Exchange rates, International financial markets JEL Code(s): F, F3, F31, G, G1, G12

• Entry and Exit in Treasury Auctions

  Staff Working Paper 2024-29 Jason Allen, Ali Hortaçsu, Eric Richert, Milena Wittwer

  This paper introduces and estimates a structural model of the Canadian primary market for government debt. We assess the role of dealer exit in this market as a key reason for increased, yet irregular, customer entry and quantify the benefits of greater customer competition against the costs of higher market volatility.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Debt management, Financial institutions, Financial markets, Market structure and pricing JEL Code(s): D, D4, D44, D47, G, G1, G12, G2, G28

• BoC–BoE Sovereign Default Database: What’s new in 2024?

  Staff Analytical Note 2024-19 David Beers, Obiageri Ndukwe, Alex Charron

  The BoC–BoE database of sovereign debt defaults, published and updated annually by the Bank of Canada and the Bank of England, provides comprehensive estimates of stocks of government obligations in default. The 2024 edition updates the historical data and revisits sovereign defaults on local currency debt.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Debt management, Development economics, Financial stability, International financial markets JEL Code(s): F, F3, F34, G, G1, G10, G14, G15

• Housing Affordability and Parental Income Support

  Staff Working Paper 2024-28 Jason Allen, Kyra Carmichael, Robert Clark, Shaoteng Li, Nicolas Vincent

  In many countries, the cost of housing has greatly outpaced income growth, leading to a housing affordability crisis. Leveraging Canadian loan-level data and quasi-experimental variation in payment-to-income constraints, we document an increasing reliance of first-time homebuyers on financial help from their parents, through mortgage co-signing. We show that parental support can effectively relax borrowing constraints—potentially to riskier borrowers.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial services, Financial system regulation and policies, Housing JEL Code(s): D, D6, D64, E, E2, E21, E24, G, G1, G18, G5, G51
• July 25, 2024

  Financial Post

  

  Tiff Macklem, Governor of the Bank of Canada
  Interview with the Financial Post

  Content Type(s): Press, Media activities

• Central Bank Digital Currency and Transmission of Monetary Policy

  Staff Working Paper 2024-27 Saroj Bhattarai, Mohammad Davoodalhosseini, Zhenning Zhao

  How does the transmission of monetary policy change when a central bank digital currency (CBDC) is introduced in the economy? Does CBDC design matter? We study these questions in a general equilibrium model with nominal rigidities, liquidity frictions, and a banking sector where commercial banks face a leverage constraint.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Digital currencies and fintech, Interest rates, Monetary policy, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E3, E31, E4, E5, E50, E58, G, G2, G21, G5, G51
• July 24, 2024

  Radio-Canada Midi info

  

  Nicolas Vincent, Deputy Governor of the Bank
  Interview with Midi info on Radio-Canada

  Content Type(s): Press, Media activities
• July 24, 2024

  Bank of Canada Media Interview – Radio-Canada

  Nicolas Vincent, Deputy Governor of the Bank of Canada, gave an interview to Radio-Canada première’s Midi info.

  Content Type(s): Press, Media advisories
• July 24, 2024

  Bank of Canada Media Interview – Financial Post

  Tiff Macklem, Governor of the Bank of Canada, gave an interview to Jordan Gowling of the Financial Post.

  Content Type(s): Press, Media advisories