G2 - Financial Institutions and Services

• Capital Structure, Pay Structure and Job Termination

  Staff Working Paper 2016-12 Jason Allen, James R. Thompson

  We develop a model to analyze the link between financial leverage, worker pay structure and the risk of job termination. Contrary to the conventional view, we show that even in the absence of any agency problem among workers, variable pay can be optimal despite workers being risk averse and firms risk neutral.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Labour markets JEL Code(s): G, G2, G24, J, J3, J33

• Measuring Systemic Risk Across Financial Market Infrastructures

  Staff Working Paper 2016-10 Fuchun Li, Héctor Pérez Saiz

  We measure systemic risk in the network of financial market infrastructures (FMIs) as the probability that two or more FMIs have a large credit risk exposure to the same FMI participant.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Financial stability, Payment clearing and settlement systems JEL Code(s): C, C5, C58, G, G2, G21, G23

• Canadian Repo Market Ecology

  Staff Discussion Paper 2016-8 Corey Garriott, Kyle Gray

  This is the first of the Financial Markets Department’s descriptions of Canadian financial industrial organization. The document discusses the organization of the repurchase-agreement (repo) market in Canada.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial markets, Financial system regulation and policies, Market structure and pricing JEL Code(s): G, G1, G18, G2, G21, G23