
Debt issuance rebounded in Q2, reports BIS
Net issuance of bonds and notes increased to $1.07 trillion, up from $371 billion in the first quarter. The increase came chiefly from the euro-denominated bond segment, said BIS, where net issuance of $464 billion was more than four times the level of the previous quarter. BIS also noted mortgage-backed bond issuance rose, particularly in the UK after the Bank of England's April announcement of a special liquidity scheme that enables UK banks to swap illiquid assets, such as mortgage-backed securities, for gilts.
The quarterly report also stated trading on the international derivatives exchanges retreated in the second quarter of 2008. Total turnover based on notional amounts decreased to $600 trillion from the high of $692 trillion recorded in the first quarter.
BIS said most of the contraction came from derivatives on short-term interest rates, but turnover also declined in derivatives on long-term interest rates and stock indexes. By contrast, turnover in foreign exchange derivatives was up over the previous quarter's level and increased by as much as 44% year-on-year. Turnover in commodities derivatives (measured only in terms of the numbers of contracts) dropped, although year-on-year growth remained 37%.
See also: Complexity and hidden risk caused the crash, says BIS
BIS chief points to central banks and warns of inflation risk
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Structured products
Regulation
What lies beneath: Nomura’s iceberg balance sheet
Collateral received by the Japanese bank exceeds its total on-balance-sheet assets – does it matter?
Receive this by email