Narayan Bulusu

Principal Researcher

Narayan Bulusu is a Principal Researcher in the Funds Management and Banking Department at the Bank of Canada, working on models supporting the management of Canada’s foreign exchange reserves. His research interests include equities pricing models, and the term structure of interest rates. He obtained a PhD in financial economics from IESE Business School.


Principal Researcher
Funds Management and Banking

Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9

Curriculum vitae


Government of Canada Securities in the Cash, Repo and Securities Lending Markets

Staff Discussion Paper 2018-4 Narayan Bulusu, Sermin Gungor
This paper documents the properties of Government of Canada securities in cash, repo and securities lending transactions over their life cycle. By tracking every security from issuance to maturity, we are able to highlight inter-linkages between the markets for cash and for specific securities.
Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Financial markets, Wholesale funding JEL Code(s): G, G1, G12, G2, G21, G23

What Drives Interbank Loans? Evidence from Canada

Staff Working Paper 2018-5 Narayan Bulusu, Pierre Guérin
We identify the drivers of unsecured and collateralized loan volumes, rates and haircuts in Canada using the Bayesian model averaging approach to deal with model uncertainty. Our results suggest that the key friction driving behaviour in this market is the collateral reallocation cost faced by borrowers.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Wholesale funding JEL Code(s): C, C5, C55, E, E4, E43, G, G2, G23
May 11, 2017

The Life Cycle of Government of Canada Bonds in Core Funding Markets

Data on the use of government securities in the repo, securities lending and cash markets suggest there are bond market clienteles in Canada. Shorter-term bonds are more prevalent in the repo market, while longer-maturity securities are more active in the securities lending market—consistent with the preferred habitat hypothesis. These results could help design better debt-management strategies and more-effective policies to maintain well-functioning financial markets.
Content Type(s): Publications, Bank of Canada Review Article Topic(s): Debt Management, Financial markets JEL Code(s): G, G1, G12, G2, G23

Can the Common-Factor Hypothesis Explain the Observed Housing Wealth Effect?

Staff Working Paper 2016-62 Narayan Bulusu, Jefferson Duarte, Carles Vergara-Alert
The common-factor hypothesis is one possible explanation for the housing wealth effect. Under this hypothesis, house price appreciation is related to changes in consumption as long as the available proxies for the common driver of housing and non-housing demand are noisy and housing supply is not perfectly elastic.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Housing JEL Code(s): E, E2, E21, R, R3, R31

Booms and Busts in House Prices Explained by Constraints in Housing Supply

Staff Working Paper 2013-18 Narayan Bulusu, Jefferson Duarte, Carles Vergara-Alert
We study the importance of supply constraints in explaining the heterogeneity in house price cycles across geographies in the United States.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Asset Pricing, Economic models JEL Code(s): R, R3, R31

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Other Research

  • "Frequency of consumption adjustment and the equity premium"
    (with Javier Gómez Biscarri), Working Paper, 2012.
  • "Booms-and-busts in house prices explained by constraints in housing supply"
    (with Jefferson Duarte and Carles Vergara-Alert), Working Paper, 2012.
  • “Forecasting the equity premium with state variables estimated from the yield curve”
    Working Paper, 2011.

SSRN webpage


  • Ph.D. (Finance), IESE Business School, Spain (2011)
  • M.B.A., Indian Institute of Management-Lucknow, India (2004)
  • B.Tech. (Mechanical), Osmania University, India (2001)

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