Global issuance of funded collateralised debt obligations reached a record $489 billion in 2006. Synthetic CDO issuance also surged last year, doubling to $450 billion from 2005 issuance levels, according to the latest Bank for International Settlements (BIS) Quarterly Review.
The report also shed some light on the yen carry trade - borrowing yen to fund acquisitions in higher-yielding currencies. Central bankers fear this trade will be a source of instability this year as hedge funds unwind
The week on Risk.net, July 7-13, 2018Receive this by email