Aykut, DilekKim, Eung Ju2015-02-262015-02-262013-07https://hdl.handle.net/10986/21526Global financial markets were largely stable during the past year, not with-standing the recent uptick in volatility amid uncertainty over the timing of an eventual tapering off of quantitative easing. Improved financial conditions are reflected in a strong rebound in gross capital flows (international bond issuance, cross-border syndicated bank loans and new equity placements) to developing countries, which were 63 percent higher in the first five months of 2013 than during the same period in 2012. Foreign direct investment (FDI) inflows to developing countries increased by 9 percent during the first quarter of 2013 on a year-on-year basis, with a mixed picture across countries. Since late May, financial market volatility has increased, with increased expectations about possible tapering of U.S. quantitative easing in coming months and uncertainty over its impacts. Although there have been some large stock market corrections in some Asian countries, so far the overall impact has been moderate. Bond yields on developing country debt are also on the rise as base rates and spreads increase.en-USCC BY 3.0 IGOACCOUNTINGASSET PRICESBAILOUTBALANCE OF PAYMENTSBANK FINANCINGBANK LENDINGBANK LOANSBANK OF JAPANBANK SPREADSBANKING SYSTEMBANKING UNIONBASIS POINTSBENCHMARKBENCHMARK YIELDSBENEFICIARYBOND BANKBOND FINANCINGBOND FLOWSBOND ISSUANCEBOND ISSUERSBOND ISSUESBOND SPREADBOND SPREADSBOND YIELDSBONDHOLDERSBONDSBORROWING COSTBORROWING COSTSBPBPSCAPITAL CONTROLSCAPITAL FLOWSCAPITAL OUTFLOWSCAPITAL RATIOCDSCENTRAL BANKCENTRAL BANKSCOMMODITYCOMMODITY PRICESCOMPOSITE INDEXCONSUMER BASECORPORATE BONDCORPORATE BOND ISSUANCECORPORATE EARNINGSCOST OF CAPITALCOUNTRY DEBTCOUNTRY EQUITIESCREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT QUALITYCREDITORSCURRENCY ASSETSCURRENT ACCOUNT BALANCEDEBT CRISISDEBT FLOWSDEBT ISSUANCEDEBT MARKETSDEBT SECURITIESDEBT SWAPSDEFLATIONDEPOSITDEPOSITORSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING COUNTRY STOCK MARKETDEVELOPING COUNTRY STOCK MARKETSDEVELOPING ECONOMIESDOMESTIC MARKETEARLY REPAYMENTECONOMIC OUTLOOKEMERGING MARKETEMERGING MARKET EQUITYEMERGING MARKET EQUITY FUNDSEMERGING MARKETSEQUITY BONDEQUITY FLOWSEQUITY FUNDSEQUITY INDEXEQUITY ISSUANCEEQUITY MARKETEQUITY MARKETSEUROBONDEUROPEAN CENTRAL BANKEXPOSURESEXTERNAL DEBTFEDERAL RESERVEFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL MARKETFINANCIAL MARKETSFISCAL CONSOLIDATIONFOREIGN ASSETSFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN INVESTORSFOREIGN MARKETSFOREIGN OWNERSHIPGDPGLOBAL ECONOMIC PROSPECTSGLOBAL FINANCIAL MARKETSGLOBAL FINANCIAL STABILITYGLOBAL RISKGLOBAL STOCK MARKETSGOVERNMENT BONDSGOVERNMENT DEFICITSGROWTH POTENTIALHOLDINGHOLDINGSINCOMEINCOME FUNDSINITIAL PUBLIC OFFERINGINTEREST RATEINTEREST RATE DIFFERENTIALSINTERNATIONAL BONDINTERNATIONAL BOND MARKETINTERNATIONAL BOND MARKETSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL INVESTMENTINVESTMENT FLOWSINVESTMENT TRUSTINVESTMENT TRUSTSINVESTOR CONFIDENCEINVESTOR INTERESTIPOISSUANCESJURISDICTIONSLABOR COSTSLENDERSLOANLOCAL CURRENCYLOCAL DEBTLONG-TERM MATURITYMARKET LIQUIDITYMARKET PERFORMANCEMARKET RETURNSMARKET UNCERTAINTYMARKET VOLATILITYMATURITYMIDDLE-INCOME COUNTRIESMONETARY POLICYMULTINATIONAL CORPORATIONSMUTUAL FUNDSNATURAL RESOURCESNET CAPITALOFFSHORE BANKINGPOLITICAL RISKSPORTFOLIOPORTFOLIO INVESTMENTPORTFOLIOSPRIVATE CAPITALPRIVATE CAPITAL FLOWSPRIVATE CAPITAL INFLOWSPRIVATE CREDITORSPRIVATE DEBTPRIVATE SECTOR DEBTPRIVATIZATIONPRODUCTION COSTSPROPERTY MARKETSRATING AGENCIESREGULATORY ENVIRONMENTREPAYMENTRETURNRISK AVERSIONRISK PROFILESS&PSECONDARY-MARKETSHORT-TERM DEBTSOVEREIGN BONDSOVEREIGN DEBTSOVEREIGN DEBT RESTRUCTURINGSOVEREIGN DEFAULTSOVEREIGN RATINGSSTOCK MARKETSTOCK MARKET INDEXSTOCK MARKET INDEXESSTOCK MARKET INDICESSTOCK MARKETSTRADE FINANCETREASURIESTREASURYTREASURY BONDTREASURY BOND YIELDTREASURY BOND YIELDSTREASURY YIELDTREASURY YIELDSTRUST FUNDSVOLATILITYWAGESWORKING CAPITALWORLD TRADEWORLD TRADE ORGANIZATION10.1596/21526