Global Financial Stability Report
A Quarterly Report on Market Developments and Issues
June 2002
June 2002
©2002 International Monetary Fund
Ordering Information
The Global Financial Stability Report provides quarterly assessments of global financial markets and addresses emerging market financing in a global context. |
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| Contents | |
| Preface | |
| Chapter I. | Overview (140KB pdf file) |
| Corporate Profitability Impacts on Financial Markets | |
| Corporate Profitability and the Banking Sector | |
| Financial Market Activities of Insurance Companies | |
| Developments in Emerging Markets | |
| Local Equity Markets | |
| Chapter II. | Recent Developments (269KB pdf file) |
| Mature Markets | |
| Mature Market Vulnerabilities--The Weakness in Japan's Banking Sector |
|
| Emerging Market Developments and Financing | |
| References | |
| Chapter III. | The Financial Market Activities of Insurance and Reinsurance Companies (140KB pdf file) |
| Insurance and Reinsurance Financial Activities | |
| Financial Efficiency and Stability Questions Raised
by Insurers' Financial Activities |
|
| Some Concluding Thoughts | |
| References | |
| Chapter IV. | Emerging Equity Markets (155k pdf file) |
| Emerging Market Equities as an Asset Class for Foreign Investors | |
| Domestic Equity as an Alternative Source of Funding | |
| Conclusions | |
| References | |
| Boxes | |
| 2.1 | Enron: Lessons Learned and the Response |
| 2.2 | Mature Equity Market Valuations |
| 2.3 | Are Forward Short Rates Useful Indicators of Market Expectations? |
| 2.4 | The Shrinking U.S. Commercial Paper Market |
| 2.5 | The Balance of Risks for Emerging Equity Markets |
| Tables | |
| 2.1 | Performance of Mature Equity Market Sectors, 2002: Q1 |
| 2.2 | Emerging Market Financing Overview |
| 2.3 | Index Performance |
| 2.4 | Performance of Emerging Bond Markets |
| 2.5 | Sovereign Spreads and Ratings |
| 2.6 | Currency of Issuance |
| 2.7 | Performance of Emerging Equity Markets |
| 3.1 | Life Insurance: Premium Growth Rates |
| 3.2 | Profitability Decomposition of Major Non-Life Markets |
| 4.1 | Equity and Bond Returns |
| Figures | |
| 2.1 | Evolution of Consensus 2002 GDP Growth Forecasts |
| 2.2 | Liquidity and Credit Premia Index |
| 2.3 | Mature Equity Market Dollar-Denominated Indices |
| 2.4 | International Yield Curve Differentials |
| 2.5 | Expected Policy Rates: Federal Funds Futures, 2002 |
| 2.6 | Credit Market Spreads |
| 2.7 | European Credit Market Spreads |
| 2.8 | Japan Credit Curves |
| 2.9 | Major Currencies Against the U.S. Dollar |
| 2.10 | Emerging Markets Financing |
| 2.11 | Emerging Market Spreads |
| 2.12 | Bond Issues |
| 2.13 | Average Correlations of the Returns on Emerging Equity Markets Indices |
| 2.14 | Net Inflows into U.S. Equity Mutual Funds |
| 2.15 | Emerging Market Earnings Forecasts |
| 2.16 | Equity Placements |
| 2.17 | Syndicated Loan Commitments |
| 2.18 | Loan-Weighted Interest Margin |
| 2.19 | Latin American Currencies Against the U.S. Dollar |
| 2.20 | Asian Currencies: Cross Rates Against the Yen |
| 2.21 | Asian Currencies: Non-Deliverable Forward Implied Yields |
| 3.1 | Total Financial Assets of Institutional Investors and Banks: United States and Japan |
| 3.2 | Financial Assets of Institutional Investors and Banks: Selected Euro Area Countries and United Kingdom |
| 3.3 | Holdings of Financial Securities by Insurance Companies and Banks |
| 3.4 | Holdings of Securities Relative to Domestic Market Size |
| 3.5 | United States: Corporate and Foreign Bonds |
| 3.6 | Balance Sheet Assets of Insurance Companies: United States and Japan |
| 3.7 | Balance Sheet Assets of Insurance Companies: Selected Euro Area Countries and United Kingdom |
| 3.8 | Global Insurance Industry Results |
| 3.9 | Non-Life Insurance: Combined Ratios in the Industrial Countries |
| 4.1 | Equity and Bond Performances |
| 4.2 | Risk-Return Trade-Off for Emerging Market and U.S. Stock Portfolios |
| 4.3 | Valuation Indicators in Emerging Equity Markets |
| 4.4 | Correlations Between Returns in Emerging and U.S. Equity Markets |
| 4.5 | Stock Market Capitalization and Bank Credit |
| 4.6 | Domestic and International Equity Issuance |
