Transaction Costs, the Value of Convenience, and the Cross-Section of Safe Asset Returns Staff working paper 2025-34 Ragnar Juelsrud, Plamen Nenov, Fabienne Schneider, Olav Syrstad We study the cross-section of equilibrium returns on safe assets using a tractable asset pricing model with a micro-founded demand for liquidity and multiple safe assets with heterogeneous transaction costs. We test the main predictions of our theory using a novel measure of relative (in)convenience yields in the US Treasury market. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E44, G, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission
The Dealer-to-Client Repo Market: A Buoy on a Swaying Sea Staff discussion paper 2025-14 Greg Adams, Evan Dudley, Jean-Sébastien Fontaine, Sofia Tchamova, Andreas Uthemann In 2024, the Canadian Overnight Repo Rate Average (CORRA) rose 7 basis points above the Bank of Canada’s target overnight rate as settlement balances declined and hedge fund borrowing increased by $30 billion, straining dealers’ balance sheets. Exercising market power, dealers raised rates, and as client activity grew, these higher rates increasingly influenced CORRAs deviation from target. Content Type(s): Staff research, Staff discussion papers JEL Code(s): D, D4, D5, D53, E, E4, E43, E44, E5, E52, G, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Market structure, Financial system, Financial institutions and intermediation, Monetary policy, Monetary policy tools and implementation
November 21, 2025 Funds management We manage the Government of Canada’s bank accounts, conduct auctions of government securities and provide other financial services to the government.
November 20, 2025 Bank of Canada updates Terms and Conditions for the Receiver General morning auctions The Bank of Canada, in its role as fiscal agent for the Government of Canada, is announcing updates to the governing the morning auction of Receiver General (RG) cash balances. Content Type(s): Press, Market notices
November 19, 2025 FM93 in Quebec City Nicolas Vincent, Deputy Governor of the Bank of Canada. Interview with Trudeau-Landry on FM93 Radio. Content Type(s): Press, Media activities
November 19, 2025 Speech by Nicolas Vincent, External Deputy Governor of the Bank of Canada On Wednesday, November 19, 2025, Nicolas Vincent, External Deputy Governor of the Bank of Canada, will speak before the Association des économistes québécois (ASDEQ) and CFA Québec. Content Type(s): Press, Media advisories
November 19, 2025 Canada’s weak productivity: reversing course Speech summary Nicolas Vincent Association des économistes québécois (ASDEQ) and CFA Québec Québec, Québec External Deputy Governor Nicolas Vincent discusses Canada’s longstanding weak productivity, what can be done to reverse the trend, and how we would all benefit if we do. Content Type(s): Press, Speeches and appearances, Speech summaries
November 19, 2025 Toward a virtuous circle for productivity Remarks Nicolas Vincent Association des économistes québécois and CFA Québec Québec, Québec External Deputy Governor Nicolas Vincent discusses the most critical areas to focus on to improve Canada's productivity, which would make the economy more resilient and raise everyone's standard of living. Content Type(s): Press, Speeches and appearances, Remarks