Bond Funds and Fixed-Income Market Liquidity: A Stress-Testing Approach Technical Report No. 115 Rohan Arora, Guillaume Bédard-Pagé, Guillaume Ouellet Leblanc, Ryan Shotlander This report provides a detailed technical description of a stress test model for investment funds called Ceto. Content Type(s): Staff research, Technical reports Topic(s): Economic models, Financial institutions, Financial markets, Financial stability JEL Code(s): G, G1, G12, G14, G2, G20, G23
Non-Bank Financial Intermediation in Canada: An Update Staff Discussion Paper 2019-2 Guillaume Bédard-Pagé Non-bank financing provides an important funding source for the economy and is a valuable alternative to traditional banking. It helps enhance the efficiency and resiliency of the financial system while giving customers more choices for their financial services. Unlike banking, it is not prudentially regulated. Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial markets, Financial stability JEL Code(s): G, G0, G01, G2, G20, G23
Non-Resident Taxes and the Role of House Price Expectations Staff Analytical Note 2019-8 Mikael Khan, Matthieu Verstraete In recent years, the governments of Ontario and British Columbia have imposed taxes on purchases by non-Canadian residents of residential properties in certain jurisdictions. Content Type(s): Staff research, Staff analytical notes Topic(s): Financial stability, Housing JEL Code(s): D, D8, D84, R, R2, R21
March 14, 2019 The Age of Leverage Remarks Carolyn A. Wilkins UBC Vancouver School of Economics and CFA Society Vancouver Vancouver, British Columbia Senior Deputy Governor Carolyn A. Wilkins discusses how high leverage is both a headwind to global growth and a vulnerability in the global financial system. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Balance of payments and components, Credit risk management, Financial institutions, Financial stability, Financial system regulation and policies, Fiscal policy
Liquidity Management of Canadian Corporate Bond Mutual Funds: A Machine Learning Approach Staff Analytical Note 2019-7 Rohan Arora, Chen Fan, Guillaume Ouellet Leblanc When redeeming shares for investors, bond fund managers must choose a mix of cash and bond sales to honour their commitments. This note uses machine learning algorithms to uncover new patterns in decisions fund managers make to meet redemptions. Content Type(s): Staff research, Staff analytical notes Topic(s): Financial markets, Financial stability JEL Code(s): G, G1, G2, G20, G23
February 21, 2019 Toward 2021: The Power—and Limitations—of Policy Remarks Stephen S. Poloz The Chamber of Commerce of Metropolitan Montreal Montréal, Quebec Governor Poloz explains that monetary policy is a powerful tool to promote economic welfare, but it also has some important limits. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Financial stability, Inflation targets, Monetary policy and uncertainty, Monetary policy framework, Recent economic and financial developments
Macroprudential Policy with Capital Buffers Staff Working Paper 2019-8 Josef Schroth The countercyclical capital buffer is part of Basel III, the set of regulatory measures developed in response to the financial crisis of 2007–09. This study focuses on how time-varying capital buffers can address inefficiencies in economies with endogenous financial crises. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Credit risk management, Financial stability, Financial system regulation and policies, Lender of last resort JEL Code(s): E, E1, E13, E3, E32, E4, E44
December 6, 2018 Year-End Economic Progress Report: Financial Vulnerabilities in Focus Remarks Stephen S. Poloz CFA Toronto Toronto, Ontario Governor Poloz talks about how household debt levels and housing markets played a role in the latest interest-rate decision. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Financial stability, Housing, Monetary policy, Recent economic and financial developments
December 6, 2018 Governor Poloz speaks on financial vulnerabilities and risks to the economy Speech summary Stephen S. Poloz CFA - Toronto Toronto, Ontario In his final speech of 2018, Governor Stephen S. Poloz discusses the vulnerabilities and risks in Canada’s financial system as well as Canadian and global economic developments. He explains how all this was taken into account in the December interest rate decision. Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Financial stability, Housing, Monetary policy, Recent economic and financial developments
Modelling the Macrofinancial Effects of a House Price Correction in Canada Staff Analytical Note 2018-36 Thibaut Duprey, Xuezhi Liu, Cameron MacDonald, Maarten van Oordt, Sofia Priazhkina, Xiangjin Shen, Joshua Slive We use a suite of risk-assessment models to examine the possible impact of a hypothetical house price correction, centred in the Toronto and Vancouver areas. We also assume financial stress significantly amplifies the macroeconomic impact of the house price decline. Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial stability, Housing JEL Code(s): E, E2, E27, E3, E37, E4, E44, G, G2, G21