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3088 Results

Canadian Repo Market Ecology

Staff discussion paper 2016-8 Corey Garriott, Kyle Gray
This is the first of the Financial Markets Department’s descriptions of Canadian financial industrial organization. The document discusses the organization of the repurchase-agreement (repo) market in Canada.

Non-Bank Dealing and Liquidity Bifurcation in Fixed-Income Markets

Staff working paper 2025-2 Michael Brolley, David Cimon
We model non-bank entry into fixed-income markets and state-dependent liquidity. Non-bank financial institutions improve liquidity more during normal times than in stress. Banks may become less reliable to marginal clients, exacerbating the difference in liquidity between normal and stressed times. Central bank lending during stress may limit this harmful division.
June 9, 2016

Financial System Review - June 2016

The Financial System Review concludes that the overall level of risk to Canada’s financial system is largely unchanged from six months ago. While household vulnerabilities have moved higher, the ongoing economic recovery in Canada means that the overall risk remains the same. The Bank highlights three vulnerabilities in the financial system: the elevated level of household indebtedness, imbalances in some regional housing markets and the fragility of liquidity in fixed-income markets.

Nowcasting Canadian GDP with Density Combinations

Staff discussion paper 2022-12 Tony Chernis, Taylor Webley
We present a tool for creating density nowcasts for Canadian real GDP growth. We demonstrate that the combined densities are a reliable and accurate tool for assessing the state of the economy and risks to the outlook.

A buoy on funding tides: How client repo demand and dealer constraints lifted CORRA

Staff analytical paper 2026-15 Jean-Sébastien Fontaine, Neil Maru, Sofia Tchamova
Pressures on the CORRA benchmark can emerge from the interaction of client borrowing behavior, dealer balance sheet constraints, even if the level of settlement balances is in a range deemed sufficient to meet the requirement of the payment system and the prudential demand of its members.

Sectoral Uncertainty

Staff working paper 2022-38 Efrem Castelnuovo, Kerem Tuzcuoglu, Luis Uzeda
We propose a new empirical framework that jointly decomposes the conditional variance of economic time series into a common and a sector-specific uncertainty component. We apply our framework to a disaggregated industrial production series for the US economy. We identify unexpected changes in durable goods uncertainty as drivers of downturns, while unexpected hikes in non-durable goods uncertainty are expansionary.
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