Global Financial Stability Report, September 2002: Market Developments and Issues

Global Financial Stability Report, September 12, 2002

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Global Financial Stability Report, September 2002: Market Developments and Issues

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Bibliographic details

• Published: September 12, 2002
• Series: Global Financial Stability Report
• DOI: https://doi.org/10.5089/9781589061576.082

Summary

• Publication date: September 12, 2002
• This September 2002 issue highlights that during the second quarter of 2002, a sharp erosion of investor confidence heightened risk aversion and growing concerns about the strength and durability of the global recovery.
• The pace and quality of corporate earnings had repercussions in all of the major equity, credit, and foreign exchange markets.
• Market adjustments occurred against the background of the bursting of the telecom, media, and technology bubble, which exposed a culture of irrational exuberance, and sometimes greed, among many buyers, sellers, and intermediaries.

Major market developments and findings

• Timeframe emphasized: second quarter of 2002.
• Investor sentiment:
  • Sharp erosion of investor confidence.
  • Heightened risk aversion.
  • Growing concerns about the strength and durability of the global recovery.
• Corporate sector:
  • Pace and quality of corporate earnings materially affected equity, credit, and foreign exchange markets.
• Market structure and behavior:
  • Bursting of the telecom, media, and technology bubble.
  • Exposure of a culture of irrational exuberance, and sometimes greed, among market participants.
• Markets affected:
  • Equity markets
  • Credit markets (including corporate bonds)
  • Foreign exchange markets
  • Securities markets and stock markets more broadly
• Geographic scope: Global, with keywords indicating relevance to Africa; Asia and Pacific; Europe; Middle East; and emerging and frontier financial markets.

Subjects and keywords (as listed)

• Subjects: Bonds, Corporate bonds, Emerging and frontier financial markets, Financial institutions, Financial markets, Securities markets, Stock markets
• Keywords: Africa, Asia and Pacific, Bonds, Corporate bonds, dollar, Emerging and frontier financial markets, emerging market, Europe, financial market, GFSR, Global, investor, investor concern, investor confidence, investor sentiment, market, market adjustment, market correction, Middle East, Securities markets, Stock markets

References

• https://www.imf.org/en/publications/gfsr
• United States and the IMF
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• Bonds
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• Financial institutions
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