Global Financial Stability Report: Market Developments and Issues, September 2005 -- Contents

Global Financial Stability Report

Market Developments and Issues

September 2005

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English

The Global Financial Stability Report provides semiannual assessments of global financial markets and addresses emerging market financing in a global context.*

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Contents

	Preface (175KB pdf file)

Chapter I.	Overview (200KB pdf file)
Chapter I.	Balance of Risks, Current Assessment
	The Search for Yield
	Potential Triggers for Market Corrections
	Trends That Could Enhance Financial Stability
	Policy Measures to Mitigate Risks
	Global Asset Allocation Framework
	Corporate Bond Markets in Emerging Market Countries
Chapter II.	Global Financial Market Developments (858KB pdf file)
Chapter II.	Low Bond Yields, High Equity Earnings Yields, and the Recovering Dollar
	The Search for Yield in Credit and Mortgage Markets—The Credit Cycle
	Increased Resilience of Emerging Markets
	Emerging Market Financing
	Balance Sheet Developments in Major Mature Economies
	Market and Credit Risk Indicators for the Mature Market Financial System
	Banking Sector Developments in Emerging Market Countries
	References
Chapter III.	Aspects of Global Asset Allocation (357KB pdf file)
Chapter III.	Module 1. Global Asset Allocation
	Module 2. Investment Fund Industry
	Module 3. Home Bias
	Module 4. Financial Stability Considerations Related to Trends in Accounting Standards
	References
Chapter IV.	Development of Corporate Bond Markets in Emerging Market Countries (370KB pdf file)
Chapter IV.	Recent Trends in Local Corporate Bond Markets
	Demand and Supply Factors Driving Corporate Bond Markets
	Market Structure and Obstacles to Growth of Corporate Bond Markets
	Challenges and Policy Issues
	References

Glossary (206KB pdf file)

Annex: Summing Up by the Chairman (204KB pdf file)

Statistical Appendix (1,305KB pdf file)

Boxes
2.1	U.S. Auto Companies and Losses in the Credit Derivatives Market
2.2	Emerging Market Borrowers Intensify Liability Management Operations
2.3	Foreign Investment in Local Currency Instruments: A Cyclical or Fundamental Phenomenon?
2.4	Collective Action Clauses
2.5	Foreign Direct Investment to Emerging Market Countries: An Asian Perspective
2.6	Impact of Correlation Assumptions on Multiple Default Probabilities and CDO Tranche-Specific Default Risk
3.1	A Sample Calculation of Potential Gains from International Diversification
4.1	Corporate Bond Market in Russia
4.2	High-Yield Bonds
4.3	Islamic Bonds in Malaysia
4.4	Demand and Supply Factors Driving Corporate Bond Markets in China and India

Tables
2.1	Global Financial Balances by Sector
2.2	U.S. Sector Financial Flows
2.3	Emerging Market External Financing
2.4	Emerging Market Countries: Selected Bank Financial Soundness Indicators
2.5	Countries with High Credit Growth in 2004 by Region: Financial Soundness Indicators
3.1	Assets Under Management by Institutional Investors
3.2	Major Industrial Countries: Assets of Institutional Investors
3.3	Assets Under Management of Mutual Funds
3.4	Assets of Exchange-Traded Funds
3.5	United States: Growth and Net Assets of Life-Cycle Funds
3.6	European Mutual Fund Distribution in 2002
3.7	United States: Mutual Fund Distribution
3.8	Share of Foreign Bonds from Inside and Outside Euro Area
4.1	Outstanding Domestic Debt Securities, Stock Market Capitalization, and Bank Credit, 2004
4.2	Corporate Issuers: Outstanding Domestic Debt Securities
4.3	Securitization: Selected Emerging Markets
4.4	Local Institutional Investor Base for Corporate Bonds
4.5	Assets Under Management by Insurance Companies
4.6	Pension Fund Investment in Corporate Fixed-Income Instruments
4.7	Emerging Market Mutual Funds: Total Net Assets
4.8	Cost of Domestic and International Bond Issues
4.9	Annual Turnover Ratios of Listed Bonds and Equities on Exchanges, 2004
4.10	Annual Bond Turnover, 2004

Figures
2.1	U.S. Yields
2.2	Inflation-Indexed Bond Yields
2.3	U.S. Real Yields and Inflation Expectations
2.4	U.S. Yield Curve Steepness and Real Short-Term Rates
2.5	Yield Curve Steepness
2.6	Global Equity Yields Versus Real Bond Yields
2.7	Corporate Financial Balances
2.8	Path for Real U.S. 1-Year LIBOR Discounted in the Term Structure
2.9	International Reserves
2.10	Earnings Yield in Major Developed Markets
2.11	Earnings per Share, Actual Minus Forecast
2.12	Earnings Yield Minus 10-Year Bond Yield
2.13	Implied Volatilities
2.14	S&P 500 Price and Difference Between Implied and Actual Volatility
2.15	U.S. Current Account Balance
2.16	U.S. Dollar Performance
2.17	U.S. Dollar Index: Net Noncommercial Positions
2.18	Net Foreign Purchases of U.S. Assets by Type
2.19	Chinese Renminbi Nondeliverable Forwards
2.20	Corporate and Agency Bond Issuance
2.21	Corporate Spreads
2.22	Credit Default Swap Spreads
2.23	Standard & Poor’s Speculative-Grade Default Rates
2.24	High-Yield Debt and the Credit Cycle
2.25	Corporate Actions of Top 150 U.S. Corporations
2.26	Surveys of Bank Lending Standards
2.27	Global Merger Deal Value
2.28	Slope of the Corporate Credit Spread Curve
2.29	Foreign Net Purchases of U.S. Agency Securities
2.30	U.S. Home Mortgages and Financing Instruments
2.31	U.S. Mortgage Debt and Equity Extraction
2.32	Adjustable Rate Mortgages
2.33	EMBIG Sovereign Spreads
2.34	Emerging Market Credit Quality
2.35	Cumulative Net Flows to U.S.-Based Mutual Funds
2.36	Asset Class Risk-Return Performance
2.37	EMBI Global Performance, 2005 to Date
2.38	U.S. Corporate, EMBIG, and Auto Sector Spreads
2.39	Cumulative Gross Annual Issuance of Bonds, Loans, and Equity
2.40	Quarterly Net Issuance
2.41	Cumulative Gross Annual Issuance of Bonds
2.42	Emerging Market Bond Issuance by Currency
2.43	Equity Placements
2.44	Syndicated Loan Commitments
2.45	FDI Inflows into Emerging Markets
2.46	Japan: Capital-to-Asset Ratio of Corporate Sector
2.47	Japan: Corporate Debt and Cash Flow Relative to GDP
2.48	Japan: Business Conditions
2.49	Euro Area and United Kingdom: Ratio of Nonfinancial Corporate Debt to GDP
2.50	Selected Countries: Return on Equity
2.51	VaR With and Without Market Effects (VaR-Beta) for the Full Portfolio of Financial Institutions
2.52	VaR-Betas for LCFIs Versus Commercial Banks
2.53	Market Implied Correlation on CDX 5-Year Investment-Grade Tranches
2.54	VaR-Betas for Portfolios of Life Insurance Companies
2.55	Probability of More Than One Default Among the Portfolios of Financial Institutions
2.56	Spread Levels on 5-Year CDX Investment-Grade Index
3.1	Asset Allocation of Institutional Investors
3.2	Global Asset Allocation of Institutional Investors by Country
3.3	Equity and Bond Holdings of Pension Funds and Life Insurance Companies
3.4	Holdings of Foreign Assets by Type of Institutional Investor
3.5	Foreign Asset Acceptance Ratios for Portfolio Assets
3.6	Foreign Asset Acceptance Ratios
4.1	Size and Composition of Local Bond Markets Outstanding, 2004
4.2	Local Corporate Bonds Outstanding
4.3	Corporate Bond Market and Money Market Interest Rates in the Czech Republic
4.4	Domestic Government Bond and Money Market Rates
4.5	Pension Fund Assets Under Management and Corporate Bonds Outstanding
4.6	G-7 Corporate Bond Issuance by S&P Rating
4.7	Distribution by Size of the Corporate Bond Issues

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Global Financial Stability Report

Global Financial Stability Report

Market Developments and Issues

Reports and Related Links:

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IMF’s Work

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES