According to the Bank for International Settlements, net new issues of international debt securities reached a record high in the second quarter. Although corporate borrowing in the major industrial countries remained subdued, the markets abosorbed a record volume of debt issues from developing countries and governments of developed countries. Declining volatility in both interest rates and exchanged rates may have lowered the perceived risk to investors.
Suggested citation: “International Finance,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-10, pp. 19, 10.01.1996.