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220
result(s)
The Canadian corporate investment gap
Staff Analytical Note 2020-19
Chris D'Souza,
Timothy Grieder,
Daniel Hyun,
Jonathan Witmer
Business investment has been lower than expected in Canada and abroad since the financial crisis of 2007–09. This corporate investment gap is mirrored in firms’ other financing decisions, as they have increased cash holdings and dividend payments and decreased issuance of debt and equity.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Firm dynamics,
Monetary policy transmission
JEL Code(s):
D,
D2,
D22,
D9,
D92,
G,
G3,
G31,
G32
What COVID-19 revealed about the resilience of bond funds
Staff Analytical Note 2020-18
Guillaume Ouellet Leblanc,
Ryan Shotlander
The liquidity management strategies of fund managers, supported by policy measures, have helped bond funds limit the increase in redemptions caused by COVID 19. This avoided further deterioration in liquidity in bond markets. Nevertheless, these funds were left with lower cash buffers, which could make them more vulnerable to additional large redemptions.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G1,
G2,
G20,
G23
Is the stock market pricing in a V‑shaped recovery?
Staff Analytical Note 2020-17
James Kyeong
Major stock indexes have bounced back from their March 23 trough to about 10 percent below their peaks. However, stocks that are more sensitive to the business cycle have not performed as well during this market rally. This suggests that stock markets are pricing in a slower, shallower economic recovery.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Asset pricing,
Financial markets
JEL Code(s):
E,
E4,
E44,
G,
G1,
G12,
G14
Will exchange-traded funds shape the future of bond dealing?
Staff Analytical Note 2020-16
Rohan Arora,
Jean-Sébastien Fontaine,
Corey Garriott,
Guillaume Ouellet Leblanc
Bond dealers have traditionally kept bonds in an inventory until clients buy them. But now, dealers have another way to access bonds for their clients: the exchange-traded fund. We discuss this new way to manage bond dealing and what it might mean for bond markets.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial markets,
Financial stability,
Market structure and pricing
JEL Code(s):
G,
G1,
G2,
G20,
G23
The potential effect of a central bank digital currency on deposit funding in Canada
Staff Analytical Note 2020-15
Alejandro García,
Bena Lands,
Xuezhi Liu,
Joshua Slive
A retail central bank digital currency denominated in Canadian dollars could, in theory, create competition for bank deposit funding.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial stability
JEL Code(s):
E,
E4,
E41,
E44,
E5,
G,
G1,
G10,
G17,
G2,
G21,
G3,
G32,
O
COVID-19 and bond market liquidity: alert, isolation and recovery
Staff Analytical Note 2020-14
Jean-Sébastien Fontaine,
Hayden Ford,
Adrian Walton
The disruption due to COVID-19 reverberated through the bond markets in three phases. In the first phase, dealers met the rising demand for liquidity. In the second, dealers reduced the supply of liquidity, and trading conditions worsened significantly. Finally, the market returned to relative stability following several interventions by the Bank of Canada.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Coronavirus disease (COVID-19),
Financial markets,
Monetary policy
JEL Code(s):
E,
E4
BoC-BoE Sovereign Default Database: What’s New in 2020?
Staff Analytical Note 2020-13
David Beers,
Elliot Jones,
John Walsh
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 2020 edition includes a new section examining the scale of domestic arrears in 2018.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Debt management,
Development economics,
Financial stability,
International financial markets
JEL Code(s):
F,
F3,
F34,
G,
G1,
G10,
G14,
G15
CBDC adoption and usage: some insights from field and laboratory experiments
Staff Analytical Note 2020-12
Janet Hua Jiang
This note discusses insights from historical launches of new payment methods and related laboratory experiments on the potential adoption and use of a central bank digital currency in the Canadian context.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
C,
C9,
E,
E4,
E5,
E58
Security of a CBDC
Staff Analytical Note 2020-11
Cyrus Minwalla
Security is an important element in ensuring public confidence in a central bank digital currency (CBDC). This note highlights the required security properties of a CBDC system and the challenges encountered with existing solutions, should the Bank of Canada choose to issue one.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3,
O31