Staff research

• Modelling the Sovereign Debt Strategy: A Practical Primer

  Staff Discussion Paper 2025-16 Nicolas Audet, Adam Epp, Jeffrey Gao, Joe Ning

  We provide a primer on the role of debt modelling in informing the sovereign debt issuance strategy and discuss how specific challenges faced by debt managers can influence model design decisions. These insights are supported by our experiences using the Canadian Debt Strategy Model to guide policy decisions.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Debt management, Econometric and statistical methods, Financial markets, Fiscal policy JEL Code(s): G, G1, G11, G17, H, H6, H63, H68

• Anticipating changes in bank capital buffer requirements

  Staff Analytical Note 2025-27 Josef Schroth

  Time-varying capital buffer requirements are a powerful tool that allow bank regulators to avoid severe financial stress without the cost of imposing very high levels of capital. However, this tool is only effective if banks understand how it is used. I present a model that banks and financial market participants can use to anticipate how time-varying capital buffer requirements change over time.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Credit risk management, Financial stability, Financial system regulation and policies JEL Code(s): E, E1, E13, E3, E32, E4, E44