Article Abstract:
The securities and derivatives markets of Organization for Economic Co-operation and Development countries are predicted to continue their rapid development. Investment decisions will be dominated by institutions which act in fiduciary roles. An acceleration in the creation of asset-backed and mortgage-backed securities will be brought about by the investor demands for broader ranges of assets. As a result of these trends, major intermediaries will de-emphasize secondary market brokerage and stress proprietary trading in cash and market derivatives.
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Article Abstract:
European financial markets showed improvements after six months of turbulence. Wide divergences in interest rates were done away with after another realignment in the EC's Exchange Rate Mechanism. Confidence in prevailing central rates was brought about by easing of the Bundesbank's monetary policy, assurance of a strong currency policy in France and other countries improved outlook for the Treaty on European Union ratification. Stock markets that devalued their currencies showed price index gains of more than 20% in the first five months of 1993.
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Article Abstract:
The volume of borrowing in the international capital markets in Jan-Apr 1993 totalled more than $256 billion. This was accompanied by growth of 38% on a year-on-year basis. The increase in borrowing activity was due to a large volume of bond offerings, accounting for two-thirds of the total. It is predicted that current trends in international financing will lead to growth in the securities business. Emphasis on credit-quality considerations and risk containment will limit recovery in syndicated lending.
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