Léanne Berger-Soucy is an analyst in the Financial Markets Department at the Bank of Canada. She holds a M.Sc. in Finance from Université de Sherbrooke.
Staff analytical notes
Price Caps in Canadian Bond Borrowing MarketsPrice controls, or caps, can lead to shortages, as 1970’s gasoline price controls illustrate. One million trades show that the market for borrowing bonds in Canada has an implicit price cap: traders are willing to pay no more than the overnight interest rate to borrow a bond. This suggests the probability of a shortage increases when interest rates are very low.
Staff discussion papers
Government of Canada Fixed-Income Market Ecology
This discussion paper is the third in the Financial Markets Department’s series on the structure of Canadian financial markets. These papers are called “ecologies” because they study the interactions among market participants, infrastructures, regulations and the terms of the traded contract itself.