Reassessing the Growth of HELOCs in Canada Using New Regulatory Data
Using new regulatory data on residential secured lending from Canadian banks, we assess the growth rate of home equity lines of credit (HELOCs).
Find Bank of Canada research by keyword, author, content type, JEL code, topic or date of publication.
Receive notification by email whenever new research is added to the website.
67
result(s)
Disentangling the Factors Driving Housing Resales
Staff Analytical Note 2019-12
Mikael Khan,
Taylor Webley
We use a recently developed model and loan-level microdata to decompose movements in housing resales since 2015. We find that fundamental factors, namely housing affordability and full-time employment, have had offsetting effects on resales over our study period.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Econometric and statistical methods,
Financial stability,
Financial system regulation and policies,
Housing,
Recent economic and financial developments
JEL Code(s):
C,
C2,
C22,
E,
E2,
R,
R2,
R21
Could Canadian Bond Funds Add Stress to the Financial System?
Staff Analytical Note 2019-9
Rohan Arora,
Guillaume Bédard-Pagé,
Guillaume Ouellet Leblanc,
Ryan Shotlander
We create a hypothetical scenario to study the role bond funds play in intensifying shocks to the financial system. Using data from 2018 and 2007, we find that bond funds play a larger role now than they did in the past.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G1,
G2,
G20,
G23
Non-Resident Taxes and the Role of House Price Expectations
Staff Analytical Note 2019-8
Mikael Khan,
Matthieu Verstraete
In recent years, the governments of Ontario and British Columbia have imposed taxes on purchases by non-Canadian residents of residential properties in certain jurisdictions.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Financial stability,
Housing
JEL Code(s):
D,
D8,
D84,
R,
R2,
R21
Liquidity Management of Canadian Corporate Bond Mutual Funds: A Machine Learning Approach
Staff Analytical Note 2019-7
Rohan Arora,
Chen Fan,
Guillaume Ouellet Leblanc
When redeeming shares for investors, bond fund managers must choose a mix of cash and bond sales to honour their commitments. This note uses machine learning algorithms to uncover new patterns in decisions fund managers make to meet redemptions.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G1,
G2,
G20,
G23
Modelling the Macrofinancial Effects of a House Price Correction in Canada
Staff Analytical Note 2018-36
Thibaut Duprey,
Xuezhi Liu,
Cameron MacDonald,
Maarten van Oordt,
Sofia Priazhkina,
Xiangjin Shen,
Joshua Slive
We use a suite of risk-assessment models to examine the possible impact of a hypothetical house price correction, centred in the Toronto and Vancouver areas. We also assume financial stress significantly amplifies the macroeconomic impact of the house price decline.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Financial institutions,
Financial stability,
Housing
JEL Code(s):
E,
E2,
E27,
E3,
E37,
E4,
E44,
G,
G2,
G21
Characterizing the Canadian Financial Cycle with Frequency Filtering Approaches
Staff Analytical Note 2018-34
Andrew Lee-Poy
In this note, I use two multivariate frequency filtering approaches to characterize the Canadian financial cycle by capturing fluctuations in the underlying variables with respect to a long-term trend. The first approach is a dynamically weighted composite, and the second is a stochastic cycle model.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods,
Financial stability,
Monetary and financial indicators,
Recent economic and financial developments
JEL Code(s):
C,
C0,
C01,
C1,
C13,
C14,
C18,
C3,
C32,
C5,
C51,
C52,
E,
E3,
E32,
E6,
E66,
G,
G0,
G01,
G1,
G18
Measuring Vulnerabilities in the Non-Financial Corporate Sector Using Industry- and Firm-Level Data
Staff Analytical Note 2018-17
Timothy Grieder,
Michal Lipsitz
Aggregate non-financial corporate debt-to-GDP has been growing rapidly in recent years and is at an all-time high. This growth began in 2011 and accelerated as the oil price shock affected the Canadian economy.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Financial stability,
Monetary and financial indicators,
Recent economic and financial developments,
Sectoral balance sheet
JEL Code(s):
G,
G0,
G01,
G3,
G32
How do Canadian Corporate Bond Mutual Funds Meet Investor Redemptions?
Staff Analytical Note 2018-14
Guillaume Ouellet Leblanc,
Rohan Arora
When investors redeem their fund shares for cash, fixed-income fund managers can choose whether to draw on their liquid holdings or sell bonds in the secondary market. We analyze the liquidity-management decisions of Canadian corporate bond mutual funds, focusing on the strategies they use to meet investor redemptions.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G1,
G2,
G20,
G23
How to Manage Macroeconomic and Financial Stability Risks: A New Framework
Staff Analytical Note 2018-11
Alexander Ueberfeldt,
Thibaut Duprey
Financial system vulnerabilities increase the downside risk to future GDP growth. Macroprudential tightening significantly reduces financial stability risks associated with vulnerabilities. Monetary policy faces a trade-off between financial stability and macroeconomic risks.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Central bank research,
Economic models,
Financial stability,
Financial system regulation and policies,
Interest rates,
Monetary policy,
Monetary policy framework
JEL Code(s):
E,
E4,
E44,
E5,
E52,
E58,
G,
G0,
G01