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Article

Building a Stronger Economic Future: Key Takeaways from Federal Budget 2022

Building a Stronger Economic Future: Key Takeaways from Federal Budget 2022 Victoria Guo, Director, Research, GRI Download the full Report - PDF Version ABOUT THIS REPORT: Finance Minister Chrystia Freeland delivered the federal budget (“Budget 2022”) on Thursday, April 7th, 2022. “A Plan to Grow Our Economy and Make Life More Affordable,” Budget 2022 sets... View Article

White Paper

Sanctions on Russia: Disruptions in Emerging Markets

The role of the Russian economy in the emerging markets has been diminishing since the 2014 sanctions were applied following the annexation of the Crimean Peninsula. Despite a recovery in 2021, Russia’s share in the global economy is now in further decline as the financial impacts of the Russia-Ukraine war are priced into global markets.

Research Report

Building Bridges: Using scientific information about the future of climate for asset-level financial risk assessment

Climate-related risks present profound challenges for financial decision-makers around the globe. In 2021 alone, the physical impacts of climate cost over US$280B (up from US$210B in 2020), and this number is expected to significantly rise over the coming decades.

Research Report

Emerging Disruption: Buy Now Pay Later in Canada

This report examines the potential of BNPL from a Canadian perspective. We introduce the current state of BNPL in Canada and the potential evolution pattern in the future. In addition, various risks associated with the BNPL disruption are discussed to help financial sector leaders better assess opportunities in the market.

Research Report

Water Risk Modeling: A Framework and Guidance for the Financial Sector

Water Risk Modeling: A Framework and Guidance for the Financial Sector Thomas Walker, Ph.D., Concordia University Dieter Gramlich, Ph.D., DHBW Heidenheim Adele Dumont-Bergeron, Concordia University Download the Executive Summary - PDF Version Download the full paper - PDF Version

Research Report

FINANCIAL INNOVATION SERIES: Adversarial Machine Learning: Risks and Opportunities for Financial Institutions

FINANCIAL INNOVATION SERIES: Adversarial Machine Learning: Risks and Opportunities for Financial Institutions Alexey Rubtsov, PhD, Senior Research Associate, Global Risk Institute Download the full Report - PDF Version INTRODUCTION In a recent study, Microsoft found that 25 out of 28 firms surveyed did not have protections against the so-called  adversarial attacks on their machine learning... View Article

Article

Deep Hedging of Derivatives Using Reinforcement Learning

One of the areas in finance where machine learning is having an impact is the hedging of derivative portfolios. If there were no transaction costs, one strategy would be to zero out all the Greek letters (delta, gamma, vega, etc.). But in practice, a trader must follow a partial hedging strategy that reflects trade-offs between risk reduction and transaction costs.

Research Report

Treading Water: Impact of Catastrophic Flooding on Canada’s Housing Market

Treading Water: Impact of Catastrophic Flooding on Canada’s Housing Market Kathryn Bakos, Director, Climate Finance and Science, Intact Centre on Climate Adaptation, University of Waterloo Dr. Blair Feltmate, Head, Intact Centre on Climate Adaptation, University of Waterloo Chris Chopik, Climate Risk, Energy Efficiency and Real Estate Cheryl Evans, Director, Flood and Wildfire Resilience, Intact Centre... View Article

Academic Final Report

The Connection Between Population Structure and Returns on Infrastructure Investments

Infrastructure is an important asset class in any balanced portfolio. It provides many attractive features including inflation-adjusted cash flows and diversification. The infrastructure itself also provides benefits to the communities it services. The amount of value created will have a dependence on the demographics of the area it serves.