06 Mar 2006, Operational Risk & Regulation
In the major markets, current valuations in equity and corporate bond markets, interest rates, oil prices and corporate earnings all weighed on equity prices. The BIS report found that actions such as leveraged buyouts continued to loom over corporate debt markets, but corporate spreads remained stable near their cyclical lows despite such event risk.
The review also presents a detailed account of recent activities by Basel-based committees and the Financial Stability Forum (FSF).
The FSF held its fourth Latin American meeting, as well as a meeting with representatives of the hedge fund community and their counterparties. At the FSF’s request, the Joint Forum published a consultative paper on high-level principles for business continuity. The Basel Committee on Banking Supervision (BCBS) released two consultative papers, the Committee on the Global Financial System (CGFS) published a report on housing finance and the Committee on Payment and Settlement Systems (CPSS) issued three new publications.
The full report can be viewed here.