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The authors compare the efficiency of Canada's largest banks with U.S. commercial banks over the past 20 years. Efficiency is measured in three ways.

Several studies have put forward the non-linear structure and option-like features of returns associated with hedge fund strategies.

Two models of default risk are prominent in the financial literature: Merton's structural model and Altman's non-structural model.

The author proposes an arbitrage-free model of the joint behaviour of interest and exchange rates whose exchange rate forecasts outperform those produced by a random-walk model, a vector autoregression on the forward premiums and the rate of depreciation, and the standard forward premium regression.

The author explores a fundamental trade-off that occurs between settlement delay and intraday liquidity in the daily operation of large-value payment systems (LVPS), with specific application to Canada's Large Value Transfer System (LVTS).

The authors examine how the use of extreme value theory yields collateral requirements that are robust to extreme fluctuations in the market price of the asset used as collateral.

Changes in investors' risk appetite have been used to explain a variety of phenomena in asset markets.

Many countries prohibit large shareholdings in their domestic banks.The authors examine whether such a restriction restrains competition in a duopolistic loan market. Blockholders may influence managers' output decisions by choosing capital structure, as in Brander and Lewis (1986).

Most financial markets allow investors to submit both limit and market orders, but it is not always clear what affects the choice of order type.

The author documents the use by Canadian banks of subordinated debt (SD) as a capital instrument.