Global Financial Stability Report, September 2003: Market Developments and Issues

Global Financial Stability Report, September 4, 2003

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Global Financial Stability Report, September 2003: Market Developments and Issues

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Bibliographic details

• Published: September 4, 2003
• Series: Global Financial Stability Report
• DOI: https://doi.org/10.5089/9781589062368.082

Summary and Key Findings

• Since March 2003, further progress has been made in addressing the lingering effects of the bursting of the equity price bubble.
• Household and corporate balance sheets have continued to improve gradually.
• Corporate default levels have declined.
• Companies in mature markets have cut costs, enhancing their ability to cope with slower growth and other potential difficulties.
• Corporations—particularly in the United States—have made good progress in their financial consolidation efforts and are in a better financial position to increase investment spending.

Major Themes and Market Developments

• Market adjustment following the equity price bubble:
  • Continued balance sheet repair for households and corporations.
  • Declining corporate default rates.
• Corporate behavior:
  • Cost cutting in mature markets as a response to slower growth and vulnerabilities.
  • Improved financial consolidation, with U.S. corporations highlighted as particularly advanced.
• Investment outlook:
  • Corporations in improved financial positions are better able to increase investment spending.

Subjects and Keywords

• Subjects: Emerging and frontier financial markets, Financial institutions, Financial markets, Financial services, Mortgages, Securities markets, Stock markets, Stocks, Yield curve
• Keywords: Africa, Asia and Pacific, bond investor, Emerging and frontier financial markets, emerging market, emerging market country, Europe, GFSR, Global, investor, investor risk appetite, market, market participant, market volatility, Middle East, Securities markets, Stock markets, Stocks, yield, Yield curve

References

• https://www.imf.org/en/publications/gfsr
• United States and the IMF
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• Emerging and frontier financial markets
• Financial institutions
• Financial markets
• Financial services
• Mortgages
• Securities markets
• Stock markets
• Stocks
• Yield curve
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