Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200468
Authors: 
Garriott, Corey
Lefebvre, Sophie
Nolin, Guillaume
Rivadeneyra, Francisco
Walton, Adrian
Year of Publication: 
2018
Series/Report no.: 
Bank of Canada Staff Discussion Paper 2018-15
Abstract: 
This paper presents four blue-sky ideas for lowering the cost of the Government of Canada's debt without increasing the debt's risk profile. We argue that each idea would improve the secondary-market liquidity of government debt, thereby increasing the demand for government bonds and thus lowering their cost at issuance. The first two ideas would improve liquidity by enhancing the active management of the government's debt through market operations used to support the liquidity of outstanding bonds. The second two ideas would simplify the set of securities issued by the government, concentrating issuance in a smaller set of bonds that would each be more highly traded. We discuss the ideas and give an account of the political, legal and operational impediments.
Subjects: 
Debt management
Financial markets
Market structure and pricing
JEL: 
H63
G12
G24
Document Type: 
Working Paper

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