G1 - General Financial Markets

• May 11, 2017

  The Life Cycle of Government of Canada Bonds in Core Funding Markets

  Bank of Canada Review - Spring 2017 Narayan Bulusu, Sermin Gungor

  Data on the use of government securities in the repo, securities lending and cash markets suggest there are bond market clienteles in Canada. Shorter-term bonds are more prevalent in the repo market, while longer-maturity securities are more active in the securities lending market—consistent with the preferred habitat hypothesis. These results could help design better debt-management strategies and more-effective policies to maintain well-functioning financial markets.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Debt management, Financial markets JEL Code(s): G, G1, G12, G2, G23
• May 11, 2017

  Wholesale Funding of the Big Six Canadian Banks

  Bank of Canada Review - Spring 2017 Matthieu Truno, Andriy Stolyarov, Danny Auger, Michel Assaf

  The Big Six Canadian banks are a dominant component of the Canadian financial system. How they finance their business activities is fundamental to how effective they are. Retail and commercial deposits along with wholesale funding represent the two major sources of funds for Canadian banks. What wholesale funding instruments do the Big Six banks use? How do they choose between different funding sources, funding strategies and why? How have banks changed their funding mix since the 2007–09 global financial crisis?

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial institutions, Financial markets, Financial system regulation and policies, Market structure and pricing, Wholesale funding JEL Code(s): E, E4, E44, F, F3, G, G0, G01, G1, G10, G12, G15, G2, G20, G21, G28, O, O1, O16