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699 Results

When Lower Risk Increases Profit: Competition and Control of a Central Counterparty

We model the behavior of dealers in Over-the-Counter (OTC) derivatives markets where a small number of dealers trade with a continuum of heterogeneous clients (hedgers). Imperfect competition and (endogenous) default induce a familiar trade-off between competition and risk.

International House Price Cycles, Monetary Policy and Risk Premiums

Staff Working Paper 2014-54 Gregory Bauer
Using a panel logit framework, the paper provides an estimate of the likelihood of a house price correction in 18 OECD countries. The analysis shows that a simple measure of the degree of house price overvaluation contains a lot of information about subsequent price reversals.
Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Housing JEL Code(s): C, C2, E, E4, E43, R, R2, R21

Capital Requirement and Financial Frictions in Banking: Macroeconomic Implications

Staff Working Paper 2010-26 Ali Dib
The author develops a dynamic stochastic general-equilibrium model with an active banking sector, a financial accelerator, and financial frictions in the interbank and bank capital markets.

Market Timing of Long-Term Debt Issuance

Staff Discussion Paper 2009-14 Jonathan Witmer
The literature on market timing of long-term debt issuance yields mixed evidence that managers can successfully time their debt-maturity issuance. The early results that are indicative of debt-maturity timing are not robust to accounting for structural breaks or to other measures of debt maturity from firm-level data that account for call and put provisions in […]
Content Type(s): Staff research, Staff discussion papers Research Topic(s): Financial markets, International topics JEL Code(s): G, G3, G30, G38

Lessons from International Central Counterparties: Benchmarking and Analysis

Staff Discussion Paper 2011-4 Alexandre Lazarow
Since the financial crisis, attention has focused on central counterparties (CCPs) as a solution to systemic risk for a variety of financial markets, ranging from repurchase agreements and options to swaps.
June 23, 2004

Financial System Review - June 2004

Financial System Review - June 2004
This section of the Financial System Review examines the recent performance of the Canadian financial system and the factors, both domestic and international, that are influencing it. In each issue, one or more subjects of particular interest are discussed as highlighted topics.
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