Back Matter

Back Matter

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
    Share
    • ShareShare
    Show Summary Details

    GLOSSARY

    401(k)

    U.S. tax-deferred retirement plan that allows workers to contribute a percentage of their pre-tax salary for investment in stocks, bonds, or other securities. The employer may match all or part of employees’ contributions.

    Accrued benefit

    Amount of accumulated pension benefits of a pension plan member.

    Accumulated benefit obligation (ABO)

    Present value of pension benefits promised by a company to its employees, at a particular date and based on current salaries.

    Actuarial gain/loss

    An actuarial gain (loss) appears when actual experience is more (less) favorable than the actuary’s estimate.

    Annuity

    A contract that provides an income for a specified period of time, such as a number of years or for life.

    Asset-backed security (ABS)

    A security that is collateralized by loans, leases, receivables, installment contracts on personal property, on real estate. Mortgage-backed securities, collateralized by commercial or residential mortgages, are a type of ABS.

    Asset-liability management (ALM)

    The management of assets to ensure that liabilities are sufficiently covered by suitable assets as and when the liabilities are due.

    Assets under management (AUM)

    The market value of assets that a financial institution (i.e., pension fund, insurance company, mutual fund, hedge fund, etc.) manages for itself or on behalf of investors.

    Balance sheet mismatch

    A balance sheet is a financial statement showing a company’s assets, liabilities, and equity on a given date. Typically, a mismatch in a balance sheet implies that the maturities, currency, or interest rate structure of the liabilities differ from those of the assets.

    Beneficiary

    Individual who is entitled to a pension benefit (including the pension plan member and dependants).

    Brady bonds

    Bonds issued by emerging market countries as part of a restructuring of defaulted commercial bank loans. These bonds are named after former U.S. Treasury Secretary Nicholas Brady and the first bonds were issued in March of 1990.

    Carry trade

    A leveraged transaction in which borrowed funds are used to buy a security whose yield is expected to exceed the cost of the borrowed funds.

    Cash securitization

    The creation of securities from a pool of pre-existing assets and receivables that are placed under the legal control of investors through a special intermediary created for this purpose. This compares with a “synthetic” securitization where the securities are created out of derivative instruments.

    Collateralized debt obligations (CDOs)

    A structured debt security backed by a portfolio of securities or loans. Securitized interests in the pool of assets are divided into tranches with differing repayment and interest earning streams. In the event of nonpayment or default, the higher-risk “equity” tranches absorb the first loss from anywhere in the portfolio, but up to a limit. After the equity tranche loss limit has been reached, the next least-secured tranche then suffers the additional principal loss, and so on. Interest earnings are typically redistributed toward the high-risk tranche from the more senior or secured tranches. Rating agencies provide separate ratings for each tranche.

    Collective action clause

    A clause in bond contracts that includes provisions allowing a qualified majority of lenders to amend key financial terms of the debt contract and bind a minority to accept these new terms.

    Credit default swap

    A financial contract under which an agent buys or sells risk protection against credit risk for a periodic fee in return for a payment by the protection seller contingent on the occurrence of a credit/default event.

    Credit enhancement

    The process of reducing credit risk by requiring collateral, insurance, or other agreements to provide bondholders with reassurance that principal and interest payments will continue if the borrower defaults.

    Credit spreads

    The spread between benchmark securities and other debt securities that are comparable in all respects except for credit quality (e.g., the difference between yields on U.S. Treasuries and those on single A-rated corporate bonds of a certain term to maturity).

    Debenture

    An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not pledged specifically to secure other debt. A debenture is documented in an indenture.

    Defined benefit plan

    Pension plan in which benefits are determined by such factors as salary history and duration of employment. The sponsor company is responsible for the investment risk and portfolio management.

    Defined contribution plan

    Pension plan in which benefits are determined by returns on the plan’s investments. Beneficiaries bear the investment risk.

    Dependency ratio

    Ratio of pensioners to those of working age in a given population.

    Derivatives

    Financial contracts whose value derives from underlying securities prices, interest rates, foreign exchange rates, market indexes, or commodity prices.

    Dollarization

    The widespread domestic use of another country’s currency (typically the U.S. dollar) to perform the standard functions of money—that of a unit of account, medium of exchange, and store of value.

    EMBI

    The acronym for the JPMorgan Emerging Market Bond Index that tracks the total returns for traded external debt instruments in the emerging markets.

    Exchange market

    An organized place or organization for trading securities and commodities, usually involving an auction process. Examples include the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX).

    Exchange-traded funds

    A type of an investment company whose objective is to achieve the same return as a particular market index or basket of securities. Shares issued by ETFs trade on a secondary market, like a stock, thus experiencing price changes throughout the day as they are bought and sold.

    Fallen Angel

    Bonds that at the time of issue carried investment grade credit ratings, but whose ratings have fallen over time to subinvestment-grade levels.

    Fiscal agent

    A bank or trust company that handles fiscal matters for a bond issuer, including paying coupons, redeeming bonds at maturity, and paying any relevant taxes. Unlike the trustee, the fiscal agent acts as a representative of the borrower.

    Foreign direct investment

    The acquisition abroad (i.e., outside the home country) of physical assets, such as plant and equipment, or of a controlling stake in a company, enterprise, or other entity.

    Forward price-earnings ratio

    The multiple of future expected earnings at which a stock sells. It is calculated by dividing the current stock price (adjusted for stock splits) by the estimated earnings per share for a future period (typically the next 12 months).

    Funded pension plan

    Pension plan that has accumulated dedicated assets to pay for the pension benefits.

    Funding gap

    The difference between the discounted value of accumulating future pension obligations and the present value of assets.

    Funding ratio

    Ratio of the amount of assets accumulated by a defined benefit pension plan to the sum of promised benefits.

    Hedge funds

    Investment pools, typically organized as private partnerships and often resident offshore for tax reasons. These funds face few restrictions on their portfolios and transactions. Consequently, they are free to use a variety of investment techniques, including short positions, transactions in derivatives, and leverage.

    Hedging

    Offsetting an existing exposure by taking an opposite position in the same or a similar risk, for example, by buying derivatives contracts.

    High-yield bonds

    Bonds with a speculative credit rating [below BB (S&P) or Ba (Moody’s) or lower]. High-yield bonds offer investors higher yields than bonds of financially sound companies. High-yield bonds are also known as “junk” bonds.

    Hybrid pension plan

    Retirement plan that has characteristics typical of both defined benefit and defined contribution plans.

    Indenture

    Agreement between the issuer and bondholders that details specific terms of the bond issuance. It specifies legal obligations of the bond issuer and rights of bondholders. An indenture spells out the specific terms of a bond, as well as the rights and responsibilities of both the issuer of the security and the holder.

    Individual retirement account (IRA)

    In the United States, tax-deferred retirement plan permitting all individuals to set aside a fraction of their wages.

    Interest rate swaps

    An agreement between counterparties to exchange periodic interest payments on some predetermined principal value, which is called the notional principal amount. For example, one party will make fixedrate and receive variable-rate interest payments.

    Investment-grade issues (Subinvestment-grade issues)

    A bond that is assigned a rating in the top four categories by commercial credit rating agencies. S&P classifies investment-grade bonds as BBB, or higher, and Moody’s classifies investment grade bonds as Baa or higher. (Subinvestment-grade bond issues are rated bonds that are below investment grade.)

    Large complex financial institution (LCFI)

    A large financial institution that is involved in a diverse range of financial activities and/or in a diverse range of geographical areas.

    Leverage

    The proportion of debt to equity. Leverage can be built up by direct borrowing (on-balance-sheet leverage, commonly measured by debtto- equity ratios) or by using off-balance-sheet transactions.

    Life-cycle funds

    Diversified mutual funds designed to adjust over time with an investor’s assumed risk tolerance throughout a variety of life circumstances or savings goals.

    Medium-term note (MTN)

    A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of 6 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., typically extending to 10-year maturities.

    Lump sum payment

    Withdrawal of accumulated benefits all at once, as opposed to in regular installments.

    Mark-to-market

    The valuation of a position or portfolio by reference to the most recent price of a financial instrument. The mark-to-market value might equal the current market value—as opposed to historic accounting or book value—or the present value of expected future cash flows.

    Market microstructure

    The institutional and behavioral aspects of securities trading process: how information arrives and is disseminated; arrival and execution of orders; impact of market makers and other intermediaries; role of market participants such as individual and institutional investors. Issues concerning market structure include transparency, liquidity, consolidation of order flow, price discovery, trading protocols, clearing and settlement, transaction costs, and regulation.

    Mutual fund

    A fund operated by an investment company that raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds may generally fall under the classification of “open-ended funds” that sell and redeem shares at any time directly to shareholders.

    Occupational pension scheme

    Pension plan set up and managed by a sponsor company for the benefit of its employees.

    Overfunded plan

    Pension plan in which assets accumulated are greater than the sum of promised benefits.

    Over-the-counter market

    A decentralized market where securities are typically traded over the telephone, facsimile, or electronic network. Also referred to as the “OTC market.”

    (Pair-wise) correlations

    A statistical measure of the degree to which the movements of two variables (for example asset returns) are related.

    Pay-as-you-go basis (PAYG)

    Arrangement under which benefits are paid out of revenue each period.

    Pension contribution

    Payment made to a pension plan by the sponsor company or by plan participants.

    Primary market

    The market where a newly issued security is first offered/sold to the public.

    Private pension plan

    Pension plan where a private entity receives pension contributions and administers the payment of pension benefits.

    Projected benefit obligation (PBO)

    Present value of pension benefits promised by a company to its employees at a particular date, and including assumption about future salary increases (i.e., assuming that the plan will not terminate in the foreseeable future).

    Proprietary trading desk

    Investment bank or dealer trading operation, using its own capital, in which direct gains are sought, rather than fee or commission income.

    Public pension plan

    Pension plan where a government body administers the payment of pension benefits (e.g., social security and similar schemes).

    Put (call) option

    A financial contract that gives the buyer the right, but not the obligation, to sell (buy) a financial instrument at a set price on or before a given date.

    Reinsurance

    Insurance placed by an underwriter in another company to cut down the amount of the risk assumed under the original insurance contract.

    Secondary markets

    Markets in which securities are traded after they are initially offered/sold in the primary market.

    Self-regulatory organization

    Nongovernment organization that has statutory responsibility to regulate its own members through the adoption and enforcement of rules of conduct for fair, ethical, and efficient practices.

    Short sell

    Selling a security that the seller does not own but is committed to repurchasing eventually. It is used to capitalize on an expected decline in the security’s price.

    Solvency

    Generally defined as the ability of an insurer to meet its obligations (liabilities) as and when they fall due.

    Sponsor company

    Company that designs, negotiates, and normally helps to administer an occupational plan for its employees and members.

    Spread

    See “credit spreads” above (the word credit is sometimes omitted). Other definitions include the gap between bid and ask prices of a financial instrument.

    Stop loss order

    Order to sell a security when it reaches a certain price.

    Syndicated loans

    Loans made jointly by a group of banks to one borrower. Usually, one or several lead banks take a larger percentage of the loan (often with a commitment to hold an agreed percentage), and they partition (syndicate) the balance to other banks.

    Tail events

    The occurrence of large or extreme movements (e.g., price, volatility, correlation, longevity) that, in terms of their probability of occurring, lie within the tail region of the normal distribution of possible outcomes.

    Trustee

    Person or organization with a duty to receive, manage, and disburse the assets of a plan.

    Underfunded plan

    Pension plan in which assets accumulated are smaller than the sum of promised benefits.

    Unfunded benefit liability

    Amount of promised pension benefits that exceeds a plan’s assets.

    Underwriting

    The process whereby a firm, usually an investment bank, purchases an issue of securities from a company and resells it to investors. In general, the underwriter guarantees the proceeds of a security sale to the issuer, thereby in effect taking ownership of the securities.

    Value at Risk (“VaR”)

    An estimate of the loss, over a given horizon, that is unlikely to be exceeded at a given probability level.

    Vesting

    Right of an employee, on termination of employment, to obtain part or all of his accrued benefits.

    Yield curve

    A chart that plots the yield to maturity at a specific point in time for debt securities with equal or similar credit risk but different maturity dates.

    ANNEX: SUMMING UP BY THE CHAIRMAN

    The following remarks by the Chairman were made at the conclusion of the Executive Board’s discussion of the global Financial Stability Report on August 29, 2005.

    General Remarks on the GFSR

    Executive Directors took the opportunity of the Board discussion to take stock of the Global Financial Stability Report (GFSR) after three years in existence. They noted that the GFSR has become an important instrument of multilateral financial sector surveillance by the Fund, complementing the World Economic Outlook (WEO). It has established the IMF as a leader in global financial stability work and has made the IMF a major contributor to international regulatory debates. At the same time, many Directors saw scope for improving the GFSR by making it more concise, sharply focused, and policy-oriented. They also called for reduced overlap between the GFSR and the WEO where possible, and for the Fund’s operational work to better integrate the GFSR’s findings.

    Global Financial Market Surveillance

    Directors welcomed the continued improvement in global financial stability. The current configuration of solid growth, low inflation, low bond yields, flat yield curves, and tight credit spreads has supported international financial markets, helping to strengthen the resilience of the global financial system. Furthermore, the much improved balance sheets of the sovereign, corporate, and household sectors, together with structural changes such as the growing importance and diversity of institutional investors and their behaviors, have provided an important cushion to financial markets. However, Directors agreed that while the benign configuration just mentioned has reduced risk in the near term, it has stored up potential vulnerabilities for the medium term, mainly in the form of larger global imbalances and higher debt levels, particularly by the household sector.

    Directors agreed that the search for yield remains a dominant theme in financial markets, leading to further narrowing of credit spreads and a greater investor focus on employing leverage and alternative investments to enhance returns. The search for yield continues to stem from low long-term interest rates in mature markets, which have been caused by a variety of reasons. These include the low level of investment that has resulted in an excess supply of global saving, a reduction in inflation risk premia due to greater central bank credibility, reserve accumulation by Asian central banks, and an ongoing shift in institutional investor portfolio preferences from equities to bonds. In part reflecting this last factor, equity earnings yields remain relatively high compared to risk-free government bond yields. The search for yield has also been stimulated by continued subdued volatility across most financial markets.

    Directors noted the impact of the search for yield in credit and mortgage markets. Given the compression of spreads in credit markets, investors have increasingly turned to using leverage in various ways to enhance returns, including through a proliferation of structured credit products. They noted that the market quickly stabilized following disturbances in the credit derivatives market in April and May related to developments in the U.S. auto sector, and the corporate credit market functioned surprisingly smoothly in absorbing downgrades in this sector. Directors observed that this likely reflected the relatively isolated nature of the difficulties as the corporate sector remains broadly healthy, with strong balance sheets and low default rates. However, they considered that the corporate credit cycle appears to be peaking as corporations have begun to increase balance sheet leverage in a variety of ways. This has increased the risk of specific corporate credit events causing corrections in credit derivative and collateralized debt obligation (CDO) markets in the period ahead.

    Directors noted that the dollar rebounded against major international currencies despite the widening U.S. current account deficit, as investors focused on interest rate and growth differentials in favor of the United States. In this connection, the global appetite for U.S. assets has to date remained strong. However, the risk of increased exchange rate volatility and a related spike in U.S. bond yields due to a reduction in capital flow to the United States—while being a low probability event given the current economic and financial outlook—cannot be dismissed, and would carry large costs to economic growth and financial markets. Directors welcomed the initial moves by the Chinese and Malaysian authorities to make their currencies more flexible.

    Many Directors expressed concern that low mortgage financing costs have induced substantial increases in household debt, particularly in the United States. Relaxation in credit standards and products such as interest-only and negative amortization mortgages may be adding to risks in mortgage markets, allowing households to take on larger levels of debt and giving increased access to marginal borrowers. However, household net worth has also risen due to increases in asset prices, particularly in the housing sector, though marginal borrowers remain particularly vulnerable to possible rises in interest rates and/or declines in housing prices.

    Directors welcomed the evidence that emerging financial markets have become increasingly resilient to market disturbances, while cautioning that the positive global economic environment may to some extent be masking underlying vulnerabilities in some countries. Indeed, in recent months, political risks and market volatility have increased in a number of emerging market countries that bear watching. Nonetheless, it is encouraging that many emerging market countries have continued to build cushions against possible adverse developments, including by accumulating reserves, undertaking early financing of external needs, and improving debt structures. Directors took note of the ongoing broadening of the investor base for emerging markets and the extension of investor interest into local instruments. While the increased interest in local markets has to some extent been fostered by cyclical developments, there are also signs that local-currency bonds in particular are becoming an interesting asset class for foreign investors. This should, in turn, help deepen local markets and reduce emerging market vulnerabilities to currency risk. Overall, Directors considered that these developments have kept emerging bond markets resilient in the face of mature credit market disturbances and specific country problems.

    Directors also welcomed recent improvements in the balance sheets of key sectors in mature market economies. Moreover, indicators of market and credit risk and financial strength underscore the resilience of the banking and insurance sectors in both mature and emerging markets. A number of Directors, however, stressed the need to guard against the potentially destabilizing effect of hedge fund operations and of the growing use of structured products, while preserving the benefits of these innovations in terms of market efficiency and liquidity.

    While considering policy measures to mitigate risks, Directors stressed that ongoing risk management by individual financial institutions and supervisory scrutiny by regulators are the most important lines of defense. In particular, given the risk of corrections in credit derivative and CDO markets, regulators must ensure that financial institutions maintain robust counterparty risk management practices, not least to contain the spillover effect of market corrections should they occur. Directors also stressed the importance of disclosure and transparency to enhance the flow of information, of the Standards and Codes work to help improve regulatory frameworks, and of improving basic financial education especially among individual investors. In the context of rising household indebtedness, mainly in the mortgage market, Directors welcomed the warnings that regulators in some major countries have given to their lending institutions to tighten credit standards. For the medium term, the risk of growing global imbalances has to be addressed by a cooperative effort by the major countries, with each adopting policies appropriate to its circumstances.

    Aspects of Global Asset Allocation

    Directors welcomed the work undertaken by staff on global asset allocation and the increasing role of institutional investors in financial markets. They noted that a better understanding of the investment patterns of pension funds, insurance companies, mutual funds, and, increasingly, hedge funds would help anticipate the potential for abrupt changes in capital flows across borders and asset classes, with direct relevance to financial stability and to policymakers.

    Directors considered the diversity of procedures followed by various institutional investors when allocating assets, reflecting their different time horizons, liability structures, and “cultural backgrounds,” as well as external influences, such as accounting and financial reporting standards, tax rules, rating agencies, and the availability of financial instruments needed for adequate risk management. In this context, most Directors agreed that the increasing dominance of strategic asset allocations driven more by long-term economic fundamentals, including risk management objectives, was a positive development, as it helps reduce the volatility and “noise” in financial markets, and makes some asset classes, such as emerging market debt, less prone to boom and bust cycles. In particular, the continued growth of institutions with long-term liabilities, such as pension funds, brings benefits from the point of view of financial stability. Some Directors, however, noted that shifts in asset allocations by such institutions might unsettle emerging markets with relatively shallow financial markets, or amplify long swings and hinder market price discovery.

    Directors noted the sustained decline in “home bias” on the part of institutional investors throughout mature economies over the past 15 years, particularly with regard to equity holdings. Directors agreed that major factors cited in the shift toward more internationalized portfolios included less strict investment restrictions, reduced information costs, and the spread of modern portfolio management practices. By raising average returns while reducing portfolio volatility, these developments have bolstered financial stability. However, Directors noted that the decline in home bias has also increased cross-border capital flows and has probably led to greater cross-border correlations among asset markets. Accordingly, Directors underscored that Fund surveillance has taken on even greater importance in a world in which institutional portfolios have become increasingly international. A few Directors expressed doubt about the report’s findings that investors from major economies, like the United States and the United Kingdom, would have little to gain from further international diversification of portfolios.

    Directors discussed the implications for financial stability of proposals and potential changes in accounting policy. They recognized the importance of international efforts to improve accounting principles in order to enhance the comparability and transparency of accounts and to strengthen market discipline. However, views differed on the impact of changes in accounting principles on financial market stability. A number of Directors agreed that accounting and financial reporting standards may influence market behavior and asset allocations by key institutional investors, including by potentially encouraging long-term investors to adopt short-term time horizons, or by reducing the diversity of market behaviors across institutional investor categories, particularly as it relates to their long-term, stable investment behavior. These Directors encouraged ongoing international efforts to preserve both the measurement benefits of using market or fair values, wherever possible, and secular gains in financial stability. A number of other Directors suggested that, while some issues exist as to fair valuation of assets and liabilities with thin markets, fair value accounting would strengthen transparency in financial markets, and would not lead to a shift to short-run strategies by major institutional investors.

    Corporate Bond Markets in Emerging Market Countries

    Directors welcomed the detailed study on corporate bond markets in emerging market countries. They observed that the achievement of macroeconomic stability by a number of emerging market countries suggests that the time may be right to press ahead with measures that contribute to the development of corporate bond markets. Directors called for continued efforts by emerging markets to facilitate the growth of institutional investors, and noted that medium- and small-sized corporations should adopt high standards of transparency and corporate governance to facilitate market access. Directors stressed that for the effective functioning of securities markets, the authorities should adopt a regulatory framework that ensures investor protection and market integrity and contains systemic risks.

    Directors noted that emerging market countries should take measures that reduce the approval time and cost of issuance, including costs associated with discriminatory taxation. Directors stressed the importance of a well-developed secondary market in improving price discovery and liquidity while at the same time acknowledging that only a few industrial countries were able to achieve this goal. Directors also noted the complementary role of the development of a government bond market, and that regional cooperation may help promote the development of bond markets for countries that lack the minimum efficient scale needed for a deep and liquid bond market.

    Directors stressed the role of corporate bond markets as an alternative funding source for corporations, noting that such markets could act as a buffer in the face of sudden interruptions in bank credit or international capital flows. However, several Directors cautioned against too rapid a growth of corporate bond markets in countries that lack the supporting financial infrastructure. In particular, the rapid growth in assets under management of institutional investors combined with excessive concentration in a few market participants could fuel asset price bubbles and cause financial market instability. Directors encouraged countries to take measures to prevent excessive concentration as well as to improve risk management practices and underscored the need for a balanced development of the required institutions, intermediaries, and market microstructure to reduce risks.

    Directors offered several suggestions to take the GFSR to the next level of development after three years of publication, which staff will consider carefully going forward.

    STATISTICAL APPENDIX

    This statistical appendix presents data on financial developments in key financial centers and emerging markets. It is designed to complement the analysis in the text by providing additional data that describe key aspects of financial market developments. These data are derived from a number of sources external to the IMF, including banks, commercial data providers, and official sources, and are presented for information purposes only; the IMF does not, however, guarantee the accuracy of the data from external sources.

    Presenting financial market data in one location and in a fixed set of tables and charts, in this and future issues of the GFSR, is intended to give the reader an overview of developments in global financial markets. Unless otherwise noted, the statistical appendix reflects information available up to July 22, 2005.

    Mirroring the structure of the chapters of the report, the appendix presents data separately for key financial centers and emerging market countries. Specifically, it is organized into three sections:

    • Figures 114 and Tables 19 contain information on market developments in key financial centers. This includes data on global capital flows, and on markets for foreign exchange, bonds, equities, and derivatives, as well as sectoral balance sheet data for the United States, Japan, and Europe.

    • Figures 15 and 16, and Tables 1021 present information on financial developments in emerging markets, including data on equity, foreign exchange, and bond markets, as well as data on emerging market financing flows.

    • Tables 2227 report key financial soundness indicators for selected countries, including bank profitability, asset quality, and capital adequacy.

    List of Tables and Figures

    Financial Soundness Indicators

    Figure 1.Major Net Exporters and Importers of Capital in 2004

    Source: International Monetary Fund, World Economic Outlook database as of August 30, 2005.

    1As measured by countries’ current account surplus (assuming errors and omissions are part of the capital and financial accounts).

    2Other countries include all countries with shares of total surplus less than 2.1 percent.

    3As measured by countries’ current account deficit (assuming errors and omissions are part of the capital and financial accounts).

    4Other countries include all countries with shares of total deficit less than 1.3 percent.

    Figure 2.Exchange Rates: Selected Major Industrial Countries

    Sources: Bloomberg L.P.; and the IMF Competitive Indicators System.

    Note: In each panel, the effective and bilateral exchange rates are scaled so that an upward movement implies an appreciation of the respective local currency.

    1Local currency units per U.S. dollar except for the euro area and the United Kingdom, for which data are shown as U.S. dollars per local currency.

    21995 = 100; constructed using 1989–91 trade weights.

    Figure 3.United States: Yields on Corporate and Treasury Bonds

    (Weekly data)

    Sources: Bloomberg L.P.; and Merrill Lynch.

    Figure 4.Selected Spreads

    (In basis points)

    Sources: Bloomberg L.P.; and Merrill Lynch.

    1Spreads over 10-year U.S. treasury bond; weekly data.

    2Spread between yields on three-month U.S. treasury repo and on three-month U.S. treasury bill.

    3Spread between yields on 90-day investment-grade commercial paper and on three-month U.S. treasury bill.

    4Spread between three-month U.S. dollar LIBOR and yield on three-month U.S. treasury bill.

    5Spread over 10-year government bond.

    Figure 5.Nonfinancial Corporate Credit Spreads

    (In basis points)

    Source: Merrill Lynch.

    Figure 6.Equity Markets: Price Indexes

    (January 1, 1990 = 100; weekly data)

    Source: Datastream.

    Figure 7.Implied and Historical Volatility in Equity Markets

    Sources: Bloomberg L.P.; and IMF staff estimates.

    Note: Implied volatility is a measure of the equity price variability implied by the market prices of call options on equity futures. Historical volatility is calculated as a rolling 100-day annualized standard deviation of equity price changes. Volatilities are expressed in percent rate of change.

    1VIX is the Chicago Board Options Exchange volatility index. This index is calculated by taking a weighted average of implied volatility for the eight S&P 500 calls and puts.

    Figure 8.Historical Volatility of Government Bond Yields and Bond Returns for Selected Countries1

    Sources: Bloomberg L.P.; and Datastream.

    1 Volatility calculated as a rolling 100-day annualized standard deviation of changes in yield and returns on 10-year government bonds. Returns are based on 10-plus year government bond indexes.

    Figure 9.Twelve-Month Forward Price/Earnings Ratios

    Source: I/B/E/S.

    Figure 10.Flows into U.S.-Based Equity Funds

    Sources: AMG Data Services; Investment Company Institute; and Datastream.

    1In billions of U.S. dollars.

    Figure 11.United States: Corporate Bond Market

    Sources: Board of Governors of the Federal Reserve System; and Bloomberg L.P.

    1Spread against yield on 10-year U.S. government bonds.

    Figure 12.Europe: Corporate Bond Market1

    Sources: Bondware; and Datastream.

    1Nonfinancial corporate bonds.

    2Spread between yields on a Merrill Lynch High-Yield European Issuers Index bond and a 10-year German government benchmark bond.

    Figure 13.United States: Commercial Paper Market1

    Source: Board of Governors of the Federal Reserve System.

    1Nonfinancial commercial paper.

    2Difference between 30-day A2/P2 and AA commercial paper.

    Figure 14.United States: Asset-Backed Securities

    Sources: Merrill Lynch; Datastream; and the Bond Market Association.

    1Merrill Lynch AAA Asset-Backed Master Index (fixed rate) option-adjusted spread.

    2Collateralized bond/debt obligations.

    Table 1.Global Capital Flows: Inflows and Outflows1(In millions of U.S. dollars)
    InflowsOutflows
    1994199519961997199819992000200120022003200419941995199619971998199920002001200220032004
    United States
    Direct investment46.157.886.5105.6179.0289.4321.3167.072.439.9115.5–80.2–98.8–91.9–104.8–142.6–224.9–159.2–142.4–134.8–173.8–248.5
    Portfolio investment139.4210.4332.8333.1187.6285.6436.6428.3427.9544.5794.4–63.2–122.4–149.3–116.9–124.2–116.2–121.9–84.615.9–72.3–90.8
    Other investment120.5170.4131.8268.157.0165.2289.0187.5268.0244.8523.3–40.9–121.4–178.9–262.8–74.2–171.2–288.4–134.9–75.4–38.8–481.1
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.5.3–9.76.7–1.0–6.78.7–0.3–4.9–3.71.52.8
    Total capital flows306.0438.6551.1706.8423.6740.21,046.9782.9768.2829.21,433.2–178.9–352.3–413.4–485.5–347.8–503.7–569.8–366.8–198.0–283.4–817.7
    Canada
    Direct investment8.29.39.611.522.724.866.127.721.46.16.3–9.3–11.5–13.1–23.1–34.1–17.3–44.5–36.2–26.8–22.1–47.0
    Portfolio investment17.218.413.711.716.62.710.324.213.414.542.5–6.6–5.3–14.2–8.6–15.1–15.6–43.0–24.4–17.0–11.4–14.4
    Other investment16.0–3.915.728.05.4–10.80.87.85.411.7–6.0–20.4–8.3–21.1–16.29.410.2–4.2–10.7–8.1–17.0–5.0
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.0.4–2.7–5.52.4–5.0–5.9–3.7–2.20.23.32.8
    Total capital flows41.423.939.151.244.816.677.259.740.232.342.8–35.9–27.9–53.9–45.4–44.8–28.5–95.4–73.4–51.7–47.3–63.5
    Japan
    Direct investment0.90.00.23.23.312.38.26.29.16.27.8–18.1–22.5–23.4–26.1–24.6–22.3–31.5–38.5–32.0–28.8–31.0
    Portfolio investment64.559.866.879.256.1126.947.460.5–20.081.2196.7–92.0–86.0–100.6–47.1–95.2–154.4–83.4–106.8–85.9–176.3–173.8
    Other investment–5.697.331.168.0–93.3–265.1–10.2–17.626.634.168.3–35.1–102.25.2–192.037.9266.3–4.146.636.4149.9–48.0
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.–25.3–58.6–35.1–6.66.2–76.3–49.0–40.5–46.1–187.2–160.9
    Total capital flows59.8157.198.1150.4–34.0–.945.449.115.7121.5272.8–170.4–269.4–154.0–271.6–75.813.4–168.0–139.2–127.7–242.3–413.6
    United Kingdom
    Direct investment10.721.727.437.574.789.3122.253.825.520.772.6–34.9–45.3–34.8–62.4–122.1–201.6–245.4–59.7–49.5–64.1–80.2
    Portfolio investment47.058.868.043.735.1183.8255.869.676.2156.8171.031.5–61.7–93.4–85.0–53.2–34.3–97.2–124.71.2–58.4–262.0
    Other investment–10.8106.2251.8322.2110.590.0414.6327.0109.1409.6720.5–42.4–74.9–214.7–277.9–23.0–96.8–426.2–255.0–150.7–421.3–585.3
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.–1.50.90.73.90.31.0–5.34.50.62.6–0.4
    Total capital flows46.9186.7347.2403.4220.3363.2792.5450.4210.8587.1964.0–47.4–181.0–342.2–421.5–198.0–331.7–774.1–434.9–198.3–541.2–928.0
    Euro area
    Direct investment209.7404.8175.7171.2158.297.1–338.2–404.9–284.7–170.2–153.4–196.1
    Portfolio investment282.9270.7316.5286.2363.2444.1–330.5–385.2–254.6–162.9–313.8–353.4
    Other investment208.3337.2237.860.7188.1349.2–31.0–166.2–244.3–218.9–269.8–362.8
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.11.616.216.5–2.635.215.4
    Total capital flows700.81,012.7730.1518.0709.4890.5–688.1–940.1–767.1–554.6–701.9–896.9
    Emerging Markets and Developing Countries2
    Direct investment96.0122.1144.0187.2184.9207.9206.0219.3170.2183.1250.0–15.6–21.8–29.3–41.0–26.2–34.7–39.0–40.8–27.4–29.6–61.0
    Portfolio investment93.878.0165.7155.150.4125.192.65.6–1.671.8170.1–12.1–53.0–87.1–112.8–7.0–49.8–105.3–105.0–88.5–130.9–179.8
    Other investment10.1138.396.6173.3–99.2–.87.5–.525.3120.5153.6–65.3–49.2–95.6–141.529.4–77.4–139.620.80.7–118.7–182.7
    Reserve assetsn.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.–67.3–130.0–94.6–105.2–34.8–93.4–113.2–116.0–185.8–364.8–517.2
    Total capital flows199.8338.3406.4515.6136.1266.2306.1190.4193.8375.4573.6–160.3–253.9–306.6–400.6–38.7–255.3–397.2–240.9–301.0–644.0–940.7
    Sources: International Monetary Fund, World Economic Outlook database as of August 30, 2005, and International Financial Statistics.

    The total net capital flows are the sum of direct investment, portfolio investment, other investment flows, and reserve assets. “Other investment” includes bank loans and deposits.

    This aggregate comprises the group of Other Emerging Market and Developing Countries defined in the World Economic Outlook, together with Hong Kong SAR, Israel, Korea, Singapore, and Taiwan Province of China.

    Table 2.Global Capital Flows: Amounts Outstanding and Net Issues of International Debt Securities by Currency of Issue and Announced International Syndicated Credit Facilities by Nationality of Borrower(In billions of U.S. dollars)
    2005
    19971998199920002001200220032004Q1
    Amounts outstanding of international debt securities by currency of issue
    U.S. dollar1,432.91,832.62,356.32,905.03,607.34,042.64,484.64,864.34,961.8
    Japanese yen444.2462.5497.4452.1411.1433.1487.9530.7521.2
    Pound sterling266.7322.4391.1452.7506.1618.7778.3984.21,006.7
    Canadian dollar67.255.556.451.547.551.579.3112.4120.1
    Swedish krona4.17.57.27.78.211.115.820.920.6
    Swiss franc138.5153.5135.5132.0123.6159.1195.6228.6219.4
    Euro1848.51,133.31,450.81,767.82,287.43,280.64,830.36,222.26,228.3
    Other78.884.198.397.1110.1151.9216.9286.3302.0
    Total3,280.94,051.44,993.05,865.97,101.38,748.611,088.713,249.613,380.1
    Net issues of international debt securities by currency of issue
    U.S. dollar320.3399.6524.2548.7702.3435.4442.0379.797.4
    Japanese yen34.0–32.8–23.410.618.6–17.43.727.23.8
    Pound sterling46.453.977.892.165.752.385.7134.247.6
    Canadian dollar–6.2–7.5–2.3–2.8–1.13.615.625.48.5
    Swedish krona–0.43.60.11.21.41.12.03.50.9
    Swiss franc–1.66.34.0–0.2–5.28.015.813.22.9
    Euro1130.0214.5506.9423.1623.7492.3785.2923.6310.1
    Other23.38.614.59.118.930.738.353.221.2
    Total545.8646.21,101.81,081.81,424.31,006.01,388.31,560.0492.4
    Announced international syndicated credit facilities by nationality of borrower
    All countries1,080.6905.31,025.21,450.01,381.41,296.91,241.41,807.3420.7
    Industrial countries903.8820.3959.51,316.11,269.81,198.01,130.01,634.1387.0
    Of which:
    United States606.1575.5622.6793.0844.1737.1608.8898.8188.1
    Japan6.111.415.417.523.819.518.227.65.1
    Germany23.615.534.042.435.884.097.1115.515.7
    France38.719.833.772.950.163.965.8151.649.6
    Italy10.16.016.134.936.022.945.322.421.6
    United Kingdom101.379.8109.0132.2105.7109.3104.1148.437.0
    Canada37.641.422.837.839.234.928.438.87.4
    Source: Bank for International Settlements.

    For 1997–98, the euro includes euro area currencies

    Table 3.Selected Indicators on the Size of the Capital Markets, 2004(In billions of U.S. dollars unless noted otherwise)
    TotalReserves Minus Gold 1StockMarket CapitalizationDebt SecuritiesBank Assets 2Bonds, Equities, and Bank Assets 3Bonds, Equities, and Bank Assets 3 (in percent of GDP)
    GDPPublicPrivateTotal
    World40,890.53,856.337,168.423,065.134,897.057,962.149,577.9144,708.5353.9
    European Union12,271.7281.19,270.37,265.911,996.019,261.922,145.950,678.0413.0
    Euro area9,550.1174.55,873.06,272.09,544.315,816.316,127.537,978.8397.7
    North America12,727.7110.317,501.06,175.917,419.723,595.69,138.350,234.9394.7
    Canada993.434.41,177.5646.4408.91,055.31,329.43,562.2358.6
    United States11,734.375.916,323.55,529.517,010.822,540.37,808.946,672.7397.7
    Japan4,671.2833.95,844.76,840.02,322.69,162.67,239.922,247.3476.3
    Memorandum items:
    EU countries
    Austria294.77.987.8180.3248.5428.8339.5856.1290.5
    Belgium352.310.4268.7432.7355.5788.21,219.22,276.1646.1
    Denmark241.739.1155.2127.0389.7516.7530.61,202.6497.6
    Finland186.212.3183.8127.086.7213.7162.0559.4300.5
    France2,046.335.31,435.71,198.21,867.43,065.64,689.39,190.6449.1
    Germany2,754.748.81,194.51,379.23,178.04,557.23,469.19,220.8334.7
    Greece205.51.2121.9291.235.8327.0225.3674.2328.1
    Ireland181.92.8114.144.6197.6242.2708.71,065.0585.6
    Italy1,680.127.9789.61,693.61,360.93,054.52,305.96,149.9366.0
    Luxembourg31.70.350.10.046.846.8643.1740.12,334.5
    Netherlands607.510.1612.2294.01,068.31,362.31,150.43,124.9514.4
    Portugal167.95.273.9126.2151.1277.3179.6530.8316.1
    Spain1,041.312.4940.7505.0947.71,452.71,197.43,590.8344.8
    Sweden346.922.1376.8189.1296.0485.1351.51,213.4348.9
    United Kingdom2,133.045.32,865.2677.81,766.02,443.84,974.210,283.3482.1
    Emerging market countries 49,868.61,937.15,143.02,322.41,336.23,658.68,115.616,917.2171.4
    Of which:
    Asia4,453.91,248.63,509.8971.21,009.11,980.35,673.511,163.6250.6
    Latin America2,005.0195.7849.7753.7215.1968.8920.92,739.4136.6
    Middle East945.6149.5132.812.618.330.9627.3791.083.6
    Africa685.691.9442.591.535.7127.2411.4981.1143.1
    Europe1,778.5251.5208.2493.458.0551.4482.61,242.269.8
    Sources: World Federation of Exchanges; Bank for International Settlements; International Monetary Fund, International Financial Statistics (IFS) and World Economic Outlook database as of August 30, 2005; and ©2003 Bureau van Dijk Electronic Publishing-Bankscope.

    Data are from the IFS.

    Assets of commercial banks; data refer to 2003.

    Sum of the stock market capitalization, debt securities, and bank assets.

    This aggregate comprises the group of Other Emerging Market and Developing Countries defined in the World Economic Outlook, together with Hong Kong SAR, Israel, Korea, Singapore, and Taiwan Province of China.

    Table 4Global Over-the-Counter Derivatives Markets: Notional Amounts and Gross Market Values of Outstanding Contracts1(In millions of U.S. dollars)
    Notional AmountsGross Market Values
    End-Dec.End-JuneEnd-Dec.End-JuneEnd-Dec.End-Dec.End-JuneEnd-Dec.End-JuneEnd-Dec.
    2002200320032004200420022003200320042004
    Total141,665169,658197,167220,058248,2886,3607,8966,9876,3959,133
    Foreign exchange18,44822,07124,47526,99729,5758819961,3018671,562
    Outright forwards and forex swaps10,71912,33212,38713,92615,242468476607308643
    Currency swaps4,5035,1596,3717,0338,217337419557442761
    Options3,2264,5805,7176,0386,11576101136116158
    Interest rate2101,658121,799141,991164,626187,3404,2665,4594,3283,9515,306
    Forward rate agreements8,79210,27110,76913,14412,8052220192920
    Swaps79,12094,583111,209127,570147,3663,8645,0043,9183,5624,793
    Options13,74616,94620,01223,91227,169381434391360492
    Equity-linked2,3092,7993,7874,5214,385255260274294501
    Forwards and swaps3644886016917596167576381
    Options1,9442,3113,1863,8293,626194193217231420
    Commodity39231,0401,4061,2701,43986100128166170
    Gold3153043443183692812394532
    Other6087361,0629521,070588888121138
    Forwards and swaps402458420503554
    Options206279642449516
    Other18,32821,94925,50822,64425,5498711,0819571,1161,594
    Memorandum items:
    Gross credit exposure4n.a.n.a.n.a.n.a.n.a.1,5111,7501,9691,4782,076
    Exchange-traded derivatives18,44822,07124,47526,99729,575
    Source: Bank for International Settlements.

    All figures are adjusted for double-counting. Notional amounts outstanding have been adjusted by halving positions vis-à-vis other reporting dealers. Gross market values have been calculated as the sum of the total gross positive market value of contracts and the absolute value of the gross negative market value of contracts with nonreporting counterparties.

    Single-currency contracts only.

    Adjustments for double-counting are estimated.

    Gross market values after taking into account legally enforceable bilateral netting agreements.

    Table 5.Global Over-the-Counter Derivatives Markets: Notional Amounts and Gross Market Values of Outstanding Contracts by Counterparty, Remaining Maturity, and Currency1(In billions of U.S. dollars)
    Notional AmountsGross Market Values
    End-Dec.End-JuneEnd-Dec.End-JuneEnd-Dec.End-Dec.End-JuneEnd-Dec.End-JuneEnd-Dec.
    2002200320032004200420022003200320042004
    Total141,665169,658197,167220,058248,2886,3607,8966,9876,3959,133
    Foreign exchange18,44822,07124,47526,99729,5758819961,3018671,562
    By counterparty
    With other reporting dealers6,8427,9548,66010,79611,664285284395247485
    With other financial institutions7,5978,9489,45010,11311,640377427535352665
    With nonfinancial customers4,0095,1686,3656,0886,271220286370267412
    By remaining maturity
    Up to one year214,52217,54318,84021,25223,115
    One to five years22,7193,1283,9013,9124,386
    Over five years21,2081,3991,7341,8342,073
    By major currency
    U.S. dollar316,50019,40121,42924,55125,9988138911,2128081,441
    Euro37,7949,87910,14510,31211,936429526665380751
    Japanese yen34,7914,9075,5006,5167,083189165217178257
    Pound sterling32,4623,0934,2864,6144,34998114179130220
    Other35,3496,8627,5908,0019,783233296329238454
    Interest rate4101,658121,799141,991164,626187,3404,2665,4594,3283,9515,306
    By counterparty
    With other reporting dealers46,72253,62263,57972,55082,1901,8482,2661,8721,6062,146
    With other financial institutions43,60753,13357,56470,21986,2561,8452,4821,7681,7072,655
    With nonfinancial customers11,32815,04420,84721,85718,894573710687638505
    By remaining maturity
    Up to one year236,93844,92746,47457,15762,185
    One to five years240,13746,64658,91466,09376,444
    Over five years224,58330,22636,60341,37648,711
    By major currency
    U.S. dollar34,39940,11046,17857,82759,7241,9172,2861,7341,4641,508
    Euro38,42950,00055,79363,00675,4431,4992,1781,7301,7742,920
    Japanese yen14,65015,27019,52621,10323,276378405358324336
    Pound sterling7,4428,3229,88411,86715,166252315228188237
    Other6,7388,09710,61010,82313,732220275278201304
    Equity-linked2,3092,7993,7874,5214,385255260274294501
    Commodity59231,0401,4061,2701,43986100128166170
    Other18,32821,94925,50822,64425,5498711,0819571,1161,594
    Source: Bank for International Settlements.

    All figures are adjusted for double-counting. Notional amounts outstanding have been adjusted by halving positions vis-à-vis other reporting dealers. Gross market values have been calculated as the sum of the total gross positive market value of contracts and the absolute value of the gross negative market value of contracts with nonreporting counterparties.

    Residual maturity.

    Counting both currency sides of each foreign exchange transaction means that the currency breakdown sums to twice the aggregate

    Single-currency contracts only.

    Adjustments for double-counting are estimated.

    Table 6.Exchange-Traded Derivative Financial Instruments: Notional Principal Amounts Outstanding and Annual Turnover
    198819891990199119921993199419951996199719981999200020012002200320042005
    Q1
    (In billions of U.S. dollars)(In billions of U.S. dollars)
    Notional principal amounts outstanding
    Interest rate futures895.41,201.01,454.82,157.42,913.14,960.45,807.65,876.25,979.07,586.78,031.47,924.87,907.89,269.59,955.613,123.718,164.920,449.6
    Interest rate options279.0386.0595.41,069.61,383.82,361.42,623.22,741.83,277.83,639.94,623.53,755.54,734.212,492.811,759.520,793.824,604.134,328.6
    Currency futures12.116.017.018.326.534.740.433.837.742.331.736.774.465.647.080.1104.287.5
    Currency options48.050.256.562.971.675.955.7120.4133.4118.649.222.421.427.427.437.960.760.0
    Stock market index futures27.041.169.176.079.8110.0127.7172.2195.9210.9291.5340.3371.5333.9325.5501.9634.3712.4
    Stock market index options42.770.293.6136.8163.1231.6242.7337.7394.5808.7907.41,510.21,148.31,574.91,700.82,202.33,023.93,768.9
    Total1,304.11,764.52,286.43,521.04,637.97,774.18,897.29,282.110,018.112,407.113,934.713,589.914,257.723,764.123,815.736,739.746,592.159,406.8
    North America951.21,153.51,264.42,152.82,698.14,359.94,823.54,852.34,841.26,347.97,355.16,930.68,167.916,203.213,693.819,503.927,609.035,851.5
    Europe177.4250.9461.4710.71,114.41,777.91,831.82,241.32,828.13,587.44,397.14,008.54,197.46,141.38,800.415,406.116,307.020,818.3
    Asia-Pacific175.5360.1560.5657.0823.51,606.02,171.81,990.22,154.02,235.71,882.52,401.31,606.21,308.51,192.41,613.12,426.92,402.0
    Other0.00.00.10.51.930.370.1198.3194.8236.1300.0249.5286.2111.1129.1216.6249.2335.0
    (In millions of contracts traded)(In millions of contracts traded)
    Annual turnover
    Interest rate futures156.4201.0219.1230.9330.1427.0628.5561.0612.2701.6760.0672.7781.21,057.51,152.01,576.81,902.6533.8
    Interest rate options30.539.552.050.864.882.9116.6225.5151.1116.7129.6117.9107.6199.6240.3302.2361.0109.7
    Currency futures22.528.229.730.031.339.069.899.673.673.554.637.243.649.142.758.783.828.3
    Currency options18.220.718.922.923.423.721.323.326.321.112.16.87.110.516.114.313.14.5
    Stock market index futures29.630.139.454.652.071.2109.0114.893.9115.9178.0204.8225.2337.1530.2725.7804.4198.9
    Stock market index options79.1101.7119.1121.4133.9144.1197.6187.3172.3178.2195.1322.5481.41,148.22,235.43,233.92,980.1679.6
    Total336.3421.2478.2510.4635.6787.91,142.91,211.61,129.31,207.21,329.41,361.91,646.12,802.04,216.85,911.76,144.71,554.8
    North America252.3288.0312.3302.6341.4382.4513.5455.0428.4463.6530.2463.0461.3675.7912.21,279.71,633.6465.5
    Europe40.864.383.0110.5185.1263.4398.1354.7391.8482.8525.9604.5718.5957.81,074.81,346.41,412.6398.5
    Asia-Pacific34.363.679.185.882.998.5131.7126.4115.9126.8170.9207.8331.3985.12,073.13,111.52,847.6626.7
    Other8.95.33.811.526.243.699.6275.5193.2134.0102.486.6135.0183.4156.7174.1250.964.1
    Source: Bank for International Settlements.
    Table 7.United States: Sectoral Balance Sheets(In percent)
    1998199920002001200220032004
    Corporate sector
    Debt/net worth51.351.148.651.650.848.446.0
    Short-term debt/total debt40.338.839.333.530.027.327.1
    Interest burden112.613.415.817.715.713.212.1
    Household sector
    Net worth/assets85.786.185.083.782.082.281.9
    Equity/total assets31.535.131.126.620.924.224.2
    Equity/financial assets45.049.845.740.833.838.439.2
    Net worth/disposable personal income585.7632.3583.3549.2503.6543.7560.5
    Home mortgage debt/total assets9.49.19.810.812.312.312.8
    Consumer credit/total assets3.33.23.53.84.13.83.6
    Total debt/financial assets20.519.722.024.929.228.229.3
    Debt-service burden212.112.312.613.113.313.213.2
    Banking sector3
    Credit quality
    Nonperforming loans4/total loans1.01.01.11.41.51.20.9
    Net loan losses/average total loans0.70.60.71.01.10.90.6
    Loan-loss reserve/total loans1.81.71.71.91.91.81.6
    Net charge-offs/total loans0.70.60.71.01.10.90.6
    Capital ratios
    Total risk-based capital12.212.212.112.712.812.812.6
    Tier 1 risk-based capital9.59.59.49.910.010.110.0
    Equity capital/total assets8.58.48.59.19.29.110.1
    Core capital (leverage ratio)7.57.87.77.87.97.97.8
    Profitability measures
    Return on average assets (ROA)1.31.31.21.21.41.41.4
    Return on average equity (ROE)14.815.714.814.214.915.214.6
    Net interest margin4.04.03.93.94.13.73.6
    Efficiency ratio561.058.758.457.755.856.558.0
    Sources: Board of Governors of the Federal Reserve System, Flow of Funds; Department of Commerce, Bureau of Economic Analysis; Federal Deposit Insurance Corporation; and Federal Reserve Bank of St. Louis.

    Ratio of net interest payments to pre-tax income.

    Ratio of debt payments to disposable personal income.

    FDIC-insured commercial banks.

    Loans past due 90+ days and nonaccrual.

    Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income.

    Table 8.Japan: Sectoral Balance Sheets1(In percent)
    FY1998FY1999FY2000FY2001FY2002FY2003FY2004
    Corporate sector
    Debt/shareholders’ equity (book value)189.3182.5156.8156.0146.1121.3121.5
    Short-term debt/total debt39.039.437.736.839.037.836.8
    Interest burden246.536.328.432.327.822.018.4
    Debt/operating profits1,813.81,472.11,229.31,480.01,370.01,079.2965.9
    Memorandum items:
    Total debt/GDP3106.8108.3102.0100.499.389.495.1
    Household sector
    Net worth/assets85.185.585.485.185.185.0
    Equity3.15.64.94.44.96.3
    Real estate39.537.536.735.534.332.7
    Net worth/net disposable income723.1747.2747.8745.5728.1718.9
    Interest burden45.35.05.15.04.94.7
    Memorandum items:
    Debt/equity477.0258.8299.5335.3300.9240.2
    Debt/real estate37.738.540.041.943.445.9
    Debt/net disposable income126.7126.3128.3130.2127.3127.1
    Debt/net worth17.516.917.217.517.517.7
    Equity/net worth3.76.55.75.25.87.4
    Real estate/net worth46.443.942.941.740.338.5
    Total debt/GDP377.377.576.477.176.475.8
    Banking sector
    Credit quality
    Nonperforming loans5/total loans6.25.96.38.47.45.84.0
    Capital ratio
    Stockholders’ equity/assets4.44.84.63.93.33.94.2
    Profitability measures
    Return on equity (ROE)6–12.52.6–0.5–14.3–19.5–2.74.1
    Sources: Ministry of Finance, Financial Statements of Corporations by Industries; Cabinet Office, Economic and Social Research Institute, Annual Report on National Accounts; Japanese Bankers Association, Financial Statements of All Banks; and Financial Services Agency, The Status of Nonperforming Loans.

    Data are for fiscal years beginning April 1. Data on household nonfinancial assets and disposable income are only available through FY2003.

    Interest payments as a percent of operating profits.

    Revised due to the change in GDP figures.

    Interest payments as a percent of disposable income.

    Nonperforming loans are based on figures reported under the Financial Reconstruction Law.

    Net income as a percentage of stockholders’ equity (no adjustment for preferred stocks, etc.).

    Table 9.Europe: Sectoral Balance Sheets 1(In percent)
    1998199920002001200220032004
    Corporate sector
    Debt/equity284.084.982.783.984.482.8
    Short-term debt/total debt36.837.541.939.938.136.1
    Interest burden316.817.118.919.819.118.6
    Debt/operating profits260.8289.0315.7322.4337.2331.2
    Memorandum items:
    Financial assets/equity1.82.12.01.91.61.6
    Liquid assets/short-term debt93.790.283.787.992.191.4
    Household sector
    Net worth/assets85.385.785.484.784.484.5
    Equity/net worth15.918.617.516.613.112.8
    Equity/net financial assets39.543.943.343.137.436.2
    Interest burden46.86.46.66.36.26.1
    Memorandum items:
    Nonfinancial assets/net worth58.956.858.760.965.064.6
    Debt/net financial assets44.041.543.045.551.149.5
    Debt/income91.894.895.595.699.4102.7
    Banking sector5
    Credit quality
    Nonperforming loans/total loans3.73.83.53.43.73.73.7
    Loan-loss reserve/nonperforming loans77.172.578.581.176.976.176.1
    Loan-loss reserve/total loans2.82.82.82.72.92.82.8
    Loan-loss provisions/total operating income612.810.27.410.113.111.111.1
    Capital ratios
    Equity capital/total assets3.93.94.14.04.04.14.1
    Capital funds/liabilities6.36.36.66.56.66.66.6
    Profitability measures
    Return on assets, or ROA (after tax)0.50.50.70.40.30.40.4
    Return on equity, or ROE (after tax)11.712.517.610.38.29.49.4
    Net interest margin1.81.51.51.51.61.61.6
    Efficiency ratio768.067.868.970.371.066.966.9
    Sources: ©2003 Bureau van Dijk Electronic Publishing-Bankscope; and IMF staff estimates.

    GDP-weighted average for France, Germany, and the United Kingdom, unless otherwise noted.

    Corporate equity adjusted for changes in asset valuation.

    Interest payments as a percent of gross operating profits.

    Interest payments as percent of disposable income.

    Fifty largest European banks. Data availability may restrict coverage to fewer than 50 banks for specific indicators.

    Includes the write-off of goodwill in foreign subsidiaries by banks with exposure to Argentina.

    Cost-to-income ratio.

    Figure 15.Emerging Market Volatility Measures

    Sources: For “Emerging Market Equity Volatility,” Morgan Stanley Capital International (MSCI); and IMF staff estimates. For “Emerging Market Debt Volatility,” JPMorgan Chase & Co.; and IMF staff estimates.

    1Data utilize the Emerging Markets index in U.S. dollars to calculate 30-day rolling volatilities.

    2Data utilize the EMBI Global total return index in U.S. dollars to calculate 30-day rolling volatilities.

    Figure 16.Emerging Market Debt Cross-Correlation Measures

    Sources: JPMorgan Chase & Co.; and IMF staff estimates.

    1Thirty-day moving simple average across all pair-wise return correlations of 20 constituents included in the EMBI Global.

    2Simple average of all pair-wise correlations of all markets in a given region with all other bond markets, regardless of region.

    Table 10.Equity Market Indices
    2005 End of Period2004 End of PeriodEnd of Period12-Month High12-Month LowAll-Time High 1All-Time Low 1
    Q1Q2Q1Q2Q3Q420002001200220032004
    World1,151.21,148.81,059.21,062.51,047.91,169.31,221.31,003.5792.21,036.31,169.3997.71,193.01,448.8423.1
    Emerging Markets
    Emerging Markets548.7565.2482.1432.2464.2542.2333.8317.4292.1442.8542.2418.5588.7588.7175.3
    EM Latin America1,510.51,617.01,169.51,062.41,238.31,483.6915.6876.2658.91,100.91,483.61,056.81,669.01,669.0185.6
    Argentina1,316.41,440.51,034.6847.81,073.71,163.01,232.7959.6470.3933.61,163.0856.31,486.32,052.2152.6
    Brazil1,090.51,145.9786.9686.4862.91,046.6763.2597.1395.4802.01,046.6690.51,217.71,306.484.1
    Chile1,027.31,078.5779.6762.0870.5997.3604.7568.7445.5800.6997.3765.31,096.21,119.6183.0
    Colombia236.5277.6152.8145.8184.6245.042.157.768.3108.6245.0142.8277.6275.741.2
    Mexico2,643.42,940.32,241.12,114.12,222.42,715.61,464.91,698.21,442.81,873.12,715.62,011.12,981.92,975.8308.9
    Peru355.9349.8364.7308.8340.5343.4125.0144.1182.7344.1343.4295.1381.6381.673.5
    Venezuela127.6121.7123.0131.7149.4151.0106.195.477.7103.8151.0119.6166.4278.456.1
    EM Asia236.4243.0222.1195.0203.2231.6143.6149.7140.4206.4231.6185.2250.5433.0104.1
    China25.326.124.722.524.125.322.816.814.125.525.321.126.7136.912.9
    India267.7296.3230.8201.6232.1273.1173.4141.2148.8246.2273.1202.7296.3323.977.7
    Indonesia1,422.81,518.7892.4927.31,060.51,324.0456.4437.2519.6831.11,324.0925.31,562.51,504.1280.0
    Korea276.0281.1276.1237.3245.9256.4125.6190.4184.7246.0256.4215.7290.5292.959.5
    Malaysia322.3324.6342.6306.5316.8335.9245.2250.7244.0300.4335.9299.1348.3465.788.3
    Pakistan266.5270.4200.7192.4188.2211.799.167.4146.0188.2211.7177.3327.2327.254.4
    Philippines405.1396.8296.1331.8364.7381.1352.6292.2210.1303.7381.1318.2453.5917.3132.6
    Taiwan Province of China247.5260.8277.0248.3243.8257.7222.2255.6189.5259.1257.7224.3267.0483.5103.9
    Thailand266.0265.5240.8245.3247.4263.9102.5107.5130.2280.5263.9225.7292.8669.472.0
    EM Europe, Middle East, & Africa220.6221.7185.6171.8185.3222.7103.5108.4163.9222.7165.1243.4243.480.8
    Czech Republic269.3286.3191.1178.4197.3234.8107.697.5116.2152.9234.8171.3292.2291.462.8
    Egypt750.6973.8282.6284.2422.1505.3154.9101.997.4234.6505.3284.2997.4849.789.9
    Hungary1,238.11,322.6782.7812.9888.91,057.0582.9507.9535.5646.91,057.0800.61,360.31,360.377.1
    Israel168.7163.9156.5167.5139.0167.4196.0132.790.8141.4167.4135.2180.0236.267.6
    Jordan474.6592.8250.2252.5284.0379.2116.1149.5153.5238.3379.2253.7609.0502.4103.1
    Morocco181.0191.7188.3189.4190.6189.1198.9180.1138.5171.4189.1158.5196.4302.199.6
    Poland1,486.41,529.11,251.61,218.31,264.71,419.31,307.9891.9861.01,118.31,419.31,144.11,579.91,792.999.6
    Russia503.4526.0596.7470.5508.7479.9155.2237.8270.7461.1479.9408.2558.3626.830.6
    South Africa358.3378.5302.7278.9327.8352.4244.8309.3272.7296.8352.4270.6380.4374.699.7
    Turkey426,533441,094336,724303,284369,472425,008163,012234,490169,900319,808425,008305,535475,282475,282426
    EM Sectors
    Energy376.0414.8324.4277.8324.5349.0148.5162.1163.1287.4349.0276.2415.8406.981.7
    Materials275.3260.6253.1222.3262.0265.0140.8173.9182.8250.1265.0220.0295.7295.798.5
    Industrials129.7129.2107.299.2106.8128.073.463.861.898.9128.097.0139.1276.852.6
    Consumer discretionary283.2289.0250.9218.7241.9292.3126.0130.6138.8233.8292.3213.1308.4308.474.1
    Consumer staple150.0161.9124.4117.1126.4147.0103.194.688.2118.6147.0116.8162.2157.180.4
    Health care293.5301.8286.6291.6251.4290.8173.9146.5169.8272.5290.8243.0313.2302.083.3
    Financials187.1188.2151.0138.8149.5187.9112.6107.798.6138.8187.9134.1204.6204.674.6
    Information technology167.0173.6174.5149.5141.6161.5130.9134.2103.9149.6161.5130.8179.2300.073.1
    Telecommunications127.5133.9108.9104.1106.9131.6113.891.972.7100.8131.697.9138.0211.562.9
    Utilities147.2164.3127.7114.3132.4149.895.791.572.4127.2149.8114.4167.6247.863.1
    World–1.6–0.22.20.3–1.411.6–14.1–17.8–21.130.812.8
    Emerging Markets
    Emerging Markets1.23.08.9–10.37.416.8–31.8–4.9–8.051.622.4
    EM Latin America1.87.16.2–9.216.619.8–18.4–4.3–24.867.134.8
    Argentina13.29.410.8–18.126.78.3–26.1–22.2–51.098.524.6
    Brazil4.25.1–1.9–12.825.721.3–14.2–21.8–33.8102.930.5
    Chile3.05.0–2.6–2.214.214.6–17.0–6.0–21.779.724.6
    Colombia–3.517.340.7–4.526.632.7–41.237.118.359.0125.7
    Mexico–2.711.219.7–5.75.122.2–21.515.9–15.029.845.0
    Peru3.6–1.76.0–15.310.30.9–26.715.326.888.4–0.2
    Venezuela–15.5–4.618.57.013.51.10.8–10.0–18.633.645.4
    EM Asia2.12.87.6–12.24.214.0–42.54.2–6.247.112.2
    China0.03.0–3.0–9.17.35.1–32.0–26.0–16.080.3–0.7
    India–2.010.7–6.3–12.615.117.7–17.2–18.65.365.511.0
    Indonesia7.56.77.43.914.424.8–49.3–4.218.960.059.3
    Korea7.61.812.2–14.13.64.3–44.651.6–3.033.24.2
    Malaysia–4.10.714.0–10.53.46.0–17.32.3–2.723.111.8
    Pakistan25.91.56.6–4.1–2.212.5–4.3–32.0116.728.912.5
    Philippines6.3–2.0–2.512.19.94.5–32.1–17.1–28.144.525.5
    Taiwan Province of China–3.95.46.9–10.4–1.85.7–42.315.0–25.836.7–0.6
    Thailand0.8–0.2–14.11.90.96.7–50.04.921.1115.4–5.9
    EM Europe, Middle East, & Africa–1.00.513.2–7.47.820.24.751.235.8
    Czech Republic14.76.325.0–6.610.619.05.5–9.419.231.653.6
    Egypt48.629.720.50.548.519.7–38.4–34.2–4.4140.8115.4
    Hungary17.16.821.03.99.318.9–19.6–12.95.420.863.4
    Israel0.8–2.810.77.0–17.020.424.7–32.3–31.655.718.4
    Jordan25.224.95.00.912.533.5–24.728.82.655.359.1
    Morocco–4.35.99.80.60.6–0.8–20.2–9.5–23.123.810.4
    Poland4.72.911.9–2.73.812.2–4.8–31.8–3.529.926.9
    Russia4.94.529.4–21.28.1–5.7–30.453.213.970.34.1
    South Africa1.75.62.0–7.917.57.5–1.226.3–11.88.818.7
    Turkey0.43.45.3–9.921.815.0–33.543.8–27.588.232.9
    EM Sectors
    Energy7.710.312.9–14.416.87.6–24.79.20.676.221.4
    Materials3.9–5.31.2–12.217.91.2–21.023.55.236.86.0
    Industrials1.3–0.38.4–7.47.719.8–41.7–13.1–3.260.129.5
    Consumer discretionary–3.12.07.3–12.810.620.8–41.63.66.368.425.0
    Consumer staple2.08.04.9–5.87.916.3–20.2–8.2–6.734.424.0
    Health care0.92.85.21.7–13.815.70.7–15.815.960.56.7
    Financials–0.40.68.8–8.17.725.7–24.3–4.3–8.440.735.4
    Information technology3.43.916.7–14.3–5.314.0–44.92.6–22.643.98.0
    Telecommunications–3.15.08.0–4.42.723.1–31.1–19.2–20.938.730.5
    Utilities–1.711.60.4–10.515.813.2–25.0–4.4–20.975.717.8
    Developed Markets
    Australia816.1853.6680.5700.6725.2797.9640.1690.8604.4655.5797.9639.6539.9712.9250.2
    Austria196.7221.2141.1150.7156.9185.396.994.691.8118.0185.3105.479.7105.496.2
    Belgium83.183.263.666.372.277.985.878.655.360.177.965.038.153.951.2
    Canada1,188.21,228.11,062.01,058.71,072.31,139.31,156.4965.8818.31,019.71,139.3886.4705.81,511.4338.3
    Denmark2,317.12,510.21,909.42,011.52,092.12,115.92,333.32,060.11,448.81,772.72,115.91,752.81,245.82,776.6556.5
    Finland98.2110.0113.191.688.193.9267.5171.8100.397.493.9126.078.8383.178.8
    France107.1111.595.398.096.0100.6152.0123.181.393.2100.695.363.4178.663.4
    Germany80.783.573.075.472.679.2124.0100.156.074.679.278.442.9163.641.4
    Greece86.092.167.068.568.783.3106.176.846.863.683.361.938.2197.238.2
    Hong Kong SAR7,336.67,779.16,747.86,349.06,956.47,668.57,690.16,058.04,808.46,341.37,668.55,553.64,305.410,165.31,995.5
    Ireland78.286.071.076.478.485.292.193.156.865.985.267.151.9107.351.9
    Italy97.997.579.883.183.193.2119.991.269.678.193.278.458.7132.158.7
    Japan708.3707.3709.2714.6665.9699.1808.2650.3524.3637.3699.1628.7462.11,655.3462.1
    Netherlands73.878.167.469.265.269.3124.5100.466.068.469.380.947.4134.947.4
    New Zealand123.5129.1112.8115.6119.9127.083.994.290.0107.6127.0101.486.6141.056.7
    Norway1,841.81,988.61,407.31,475.81,603.21,690.31,458.01,278.4898.31,240.91,690.31,116.3762.21,599.1455.9
    Portugal75.972.374.172.772.774.797.979.557.066.174.764.648.1123.148.1
    Singapore1,181.31,228.61,048.31,041.31,110.71,148.11,173.4936.8764.91,005.11,148.1922.1687.31,624.2508.2
    Spain105.8111.592.092.891.7104.3107.799.069.989.6104.381.961.1133.727.4
    Sweden5,998.26,467.45,238.65,385.25,451.95,785.47,735.06,178.83,517.44,675.25,785.44,173.82,914.912,250.4787.2
    Switzerland778.4820.6734.4735.8717.5747.11,017.0813.4603.2714.3747.1716.9481.41,032.8158.1
    United Kingdom1,478.71,539.51,321.91,349.41,376.61,453.01,841.41,586.21,179.21,348.71,453.01,336.7986.41,974.2585.4
    United States1,109.31,122.61,055.91,068.91,044.51,137.41,249.91,084.5824.61,045.41,137.4950.4726.51,493.0273.7
    Developed Markets
    Australia2.34.63.83.03.510.03.77.9–12.58.521.7
    Austria6.112.519.66.84.118.1–7.6–2.4–3.028.557.0
    Belgium6.70.15.84.38.87.9–13.1–8.3–29.78.729.5
    Canada4.33.44.1–0.31.36.38.1–16.5–15.324.611.7
    Denmark9.58.37.75.34.01.19.9–11.7–29.722.419.4
    Finland4.612.116.2–19.1–3.86.5–8.9–35.8–41.6–2.9–3.6
    France6.54.12.32.9–2.04.71.4–19.0–34.014.67.9
    Germany2.03.5–2.23.4–3.89.1–10.8–19.3–44.033.26.1
    Greece3.27.15.42.20.421.2–38.6–27.6–39.135.831.1
    Hong Kong SAR–4.36.06.4–5.99.610.2–16.7–21.2–20.631.920.9
    Ireland–8.19.97.77.52.68.6–8.51.1–39.016.029.2
    Italy5.1–0.42.34.012.13.9–24.0–23.612.219.3
    Japan1.3–0.111.30.8–6.85.0–20.3–19.5–19.421.69.7
    Netherlands6.65.7–1.52.8–5.86.21.0–19.4–34.33.61.3
    New Zealand–2.74.54.82.53.85.9–24.912.2–4.419.618.0
    Norway9.08.013.44.98.65.47.1–12.3–29.738.136.2
    Portugal1.6–4.812.1–1.92.7–6.2–18.8–28.315.913.1
    Singapore2.94.04.3–0.76.73.4–25.7–20.2–18.431.414.2
    Spain1.45.42.60.8–1.113.8–11.2–8.0–29.528.316.4
    Sweden3.77.812.12.81.26.1–13.8–20.1–43.132.923.7
    Switzerland4.25.42.80.2–2.54.16.2–20.0–25.818.44.6
    United Kingdom1.84.1–2.02.12.05.5–6.7–13.9–25.714.47.7
    United States–2.51.21.01.2–2.38.9–13.6–13.2–24.026.88.8
    Source: Data are provided by Morgan Stanley Capital International. Regional and sectoral compositions conform to Morgan Stanley Capital International definitions.

    From 1990 or initiation of the index.

    Table 11.Foreign Exchange Rates(Units per U.S. dollar)
    2005 End of Period2004 End of PeriodEnd of Period12-Month High12-Month LowAll-Time High 1All-Time Low 1
    Q1Q2Q1Q2Q3Q420002001200220032004
    Emerging Markets
    Latin America
    Argentina2.922.892.862.962.982.971.001.003.362.932.972.863.060.983.86
    Brazil2.682.332.903.092.862.661.952.313.542.892.662.333.080.003.95
    Chile586.10577.75612.40636.00610.75555.75573.85661.25720.25592.75555.75555.75644.25295.18759.75
    Colombia2,3742,327.252,679.552,693.22,618.92,354.752,2362,277.502,8672,7802,354.7523052680.2689.212980
    Mexico11.1710.7511.1311.4911.3811.159.629.1610.3711.2311.1510.7411.592.6811.67
    Peru3.263.253.463.473.343.283.533.443.513.463.283.253.471.283.65
    Venezuela2,1472,1451,9181,9181,9181,9187007581,3891,5981,9181,9182,14845.02,148
    Asia
    China8.288.288.288.288.288.288.288.288.288.288.288.288.284.738.80
    India43.7543.4943.646.0645.9543.4646.6848.2547.9845.6343.4643.2946.4716.9249.05
    Indonesia9,4659,7608,5649,4009,1559,2709,67510,4008,9508,4209,2708,8009,7601,97716,650
    Korea1,0151,0351,1471,1551,1521,0351,2651,3141,1861,1921,0359971,170684.001,963
    Malaysia3.83.803.803.803.803.803.803.803.803.803.803.803.802.444.71
    Pakistan59.459.7057.3958.0859.1959.4357.659.958.2557.2559.4358.0561.3321.1864.35
    Philippines54.855.9856.2056.1256.2856.2350.0051.6053.6055.5456.2353.9556.4623.1056.46
    Taiwan Province of China31.5331.6233.0233.7833.9831.7433.0834.9534.6433.9631.7430.7934.224.4835.19
    Thailand39.1241.3339.2940.9341.438.9243.3844.2143.1139.6238.9238.2441.6523.1555.5
    Europe, Middle East, & Africa
    Czech Republic23.1824.8526.6726.1725.3722.4237.2835.630.0725.7122.4221.9126.5121.9142.17
    Egypt5.805.796.206.196.246.093.894.584.626.176.095.796.253.296.25
    Hungary190.82204.04201.68205.61198.21181.02282.34274.81224.48208.70181.02180.05208.0990.20317.56
    Israel4.364.584.534.504.484.324.044.404.744.394.324.304.581.965.01
    Jordan0.710.710.710.710.710.710.710.710.710.710.710.710.710.640.72
    Morocco11.1910.6910.3810.7310.5611.099.459.619.8010.0811.0910.3911.287.7511.28
    Poland3.163.343.863.693.513.014.133.963.833.733.012.923.721.724.71
    Russia27.8628.6328.5229.0729.2227.7228.1630.5131.9629.2427.7227.4529.280.9831.96
    South Africa6.246.656.296.146.455.677.5811.968.576.685.675.626.922.5012.45
    Turkey1.351.331.311.481.511.340.671.451.661.411.341.261.520.001.77
    Developed Markets
    Australia 20.770.760.770.700.730.780.560.510.560.750.780.690.800.840.48
    Canada1.211.231.311.331.261.201.501.591.571.301.201.181.331.121.61
    Denmark5.756.156.056.095.985.497.928.357.085.915.495.456.195.349.00
    Euro21.301.211.231.221.241.360.940.891.051.261.361.201.361.360.83
    Hong Kong SAR7.807.777.797.807.807.777.807.807.807.767.777.777.807.707.82
    Japan107.15110.92104.22108.77110.05102.63114.41131.66118.79107.22102.63102.05111.9980.63159.9
    New Zealand 20.710.700.670.640.680.720.440.420.520.660.720.630.740.740.39
    Norway6.346.536.846.936.716.088.808.966.946.676.086.057.045.519.58
    Singapore1.651.691.671.721.681.631.731.851.731.701.631.621.731.391.91
    Sweden7.077.817.547.517.276.669.4210.488.697.196.666.607.835.0911.03
    Switzerland1.201.281.271.251.251.141.611.661.381.241.141.131.281.121.82
    United Kingdom 21.891.791.851.821.811.921.491.451.611.791.921.771.952.011.37
    Emerging Markets
    Latin America
    Argentina1.91.12.6–3.4–0.80.30.2–0.2–70.214.7–1.4
    Brazil–0.914.9–0.1–6.17.87.7–7.7–15.6–34.722.48.9
    Chile–5.21.4–3.2–3.74.19.9–7.8–13.2–8.221.56.7
    Colombia–0.82.03.7–0.52.811.2–16.3–1.8–20.63.118.1
    Mexico–0.23.90.9–3.10.92.1–1.25.1–11.7–7.60.7
    Peru0.60.20.1–0.33.91.8–0.52.4–2.01.55.6
    Venezuela–10.70.1–16.7–7.3–7.7–45.5–13.1–16.7
    Asia
    China
    India–0.70.64.6–5.30.25.7–6.7–3.30.65.25.0
    Indonesia–2.1–3.0–1.7–8.92.7–1.2–26.6–7.016.26.3–9.2
    Korea1.9–1.83.9–0.70.311.3–9.9–3.710.8–0.515.2
    Malaysia
    Pakistan–0.5–0.2–1.2–1.9–0.4–10.1–3.82.81.7–3.7
    Philippines2.6–2.1–1.20.1–0.30.1–19.5–3.1–3.7–3.5–1.2
    Taiwan Province of China0.7–0.32.8–2.2–0.67.1–5.1–5.30.92.07.0
    Thailand–0.5–5.30.8–4.0–1.16.4–13.6–1.92.68.81.8
    Europe, Middle East, and Africa
    Czech Republic–3.3–6.7–3.61.93.113.2–3.94.718.416.914.7
    Egypt5.00.1–0.50.1–0.72.4–11.5–15.1–0.9–25.11.3
    Hungary–5.1–6.53.5–1.93.79.5–10.62.722.47.615.3
    Israel–0.9–4.7–3.00.60.43.62.7–8.1–7.38.01.6
    Jordan0.1–0.10.10.0–0.30.2–0.10.1
    Morocco–0.94.6–2.9–3.31.6–4.8–1.1–1.7–1.9–2.7–9.2
    Poland–4.7–5.4–3.34.75.016.60.44.23.52.624.0
    Russia–0.5–2.72.5–1.9–0.55.4–2.2–7.7–4.59.35.5
    South Africa–9.2–6.26.22.5–4.913.9–18.8–36.639.628.218.0
    Turkey–0.61.57.0–11.4–1.412.1–18.6–53.9–12.417.74.7
    Developed Markets
    Australia–0.9–1.42.0–8.84.17.2–14.9–8.810.233.93.8
    Canada–0.7–1.2–0.9–1.85.74.9–3.5–5.91.321.27.9
    Denmark–4.5–6.6–2.2–0.81.89.1–6.7–5.117.919.87.8
    Euro–4.4–6.6–2.2–0.91.99.0–6.3–5.618.020.07.6
    Hong Kong SAR–0.30.4–0.4–0.10.3–0.30.00.4–0.1
    Japan–4.2–3.42.9–4.2–1.27.2–10.4–13.110.810.84.5
    New Zealand–0.9–2.02.0–4.86.56.0–14.9–6.125.925.09.5
    Norway–4.1–3.0–2.6–1.23.310.3–8.9–1.829.24.19.6
    Singapore–1.1–2.11.5–2.52.03.2–4.0–6.06.42.14.2
    Sweden–5.9–9.4–4.60.33.39.2–9.5–10.220.620.98.0
    Switzerland–4.7–6.6–2.11.40.29.3–1.3–3.020.011.78.7
    United Kingdom–1.4–5.23.4–1.4–0.55.9–7.7–2.610.710.97.4
    Source: Bloomberg L.P.

    High value indicates value of greatest appreciation against the U.S. dollar; low value indicates value of greatest depreciation against the U.S. dollar. “All Time” refers to the period since 1990 or initiation of the currency.

    U.S. dollars per unit.

    Table 12.Emerging Market Bond Index: EMBI Global Total Returns Index
    2005 End of Period2004 End of PeriodEnd of Period12-Month High12-Month LowAll-Time High1All-Time Low1
    Q1Q2Q1Q2Q3Q420002001200220032004
    Composite31233229227630131619619922528331633227733263
    Latin America
    Argentina77767470748118361576781817119447
    Brazil43146738736441844622223823039044646736646768
    Chile17017716816417017211612915016217217716417798
    Colombia22124021619921622811514916920122824019924070
    Dominican Republic1341489785112126102117991261488514883
    Ecuador58056252343751956217724123046456261343661361
    El Salvador1241311191111191239811012313111113195
    Mexico30532329928230030819221925428430832328332358
    Panama50255047544947851130035339545251155045055056
    Peru47750744040845248524430734143148550940850952
    Uruguay1261361069411612910562971291369513638
    Venezuela47150139839045148422423628139348450139250159
    Asia
    China25126124924024925317920323024125326124026198
    Malaysia20421420019120320713315017519420721419221464
    Philippines28830126526227628015720123026128030326330381
    Thailand18719018818418818813815317418418819018419075
    Europe, Middle East, & Africa
    Bulgaria62664859459261663037246852557863064859364880
    Cõte d’Ivoire6569655665654254435865695610029
    Egypt14915514514214715010312214015015514215587
    Hungary14215114414214414411112213714214415114215197
    Lebanon19119718418519219512213014817719519718519799
    Morocco27227626426526826819922223726226827626527673
    Nigeria65371261859563865626736437658665671259771266
    Pakistan10610816010010510712216016010710910016091
    Poland31232830629230931222124528029031232929232971
    Russia47952344641744147516425634842647552341252326
    South Africa31733631229831532319022027129732333629833699
    Tunisia13614513412713513811212713814512714598
    Turkey30031829026129430714417621327930731826331891
    Ukraine317328295281294310127199241289310328279328100
    Latin27929825924427128520217718925228529824529862
    Non-Latin37339735533735937418624029134237439733839772
    Composite–1.36.53.4–5.59.04.914.41.413.125.711.7
    Latin America
    Argentina–5.3–0.79.2–4.95.09.87.8–66.9–6.419.119.8
    Brazil–3.48.2–0.9–5.814.96.713.07.3–3.669.814.3
    Chile–1.14.03.5–2.63.71.312.211.715.88.36.0
    Colombia–3.18.77.1–7.68.55.33.029.513.319.413.2
    Dominican Republic6.410.4–2.0–11.931.711.813.9–15.327.2
    Ecuador3.3–3.112.9–16.418.78.253.936.1–4.7101.521.1
    El Salvador1.45.17.9–6.36.63.411.911.5
    Mexico–1.06.15.3–5.66.42.717.514.316.111.68.6
    Panama–1.69.55.2–5.56.46.88.317.611.914.413.0
    Peru–1.86.32.0–7.110.77.40.226.210.826.612.6
    Uruguay–2.58.010.2–11.924.211.2–40.655.634.0
    Venezuela–2.76.31.4–2.115.67.316.05.618.939.923.2
    Asia
    China–0.84.03.3–3.64.01.412.113.313.64.55.1
    Malaysia–1.54.83.2–4.55.92.111.612.916.910.76.6
    Philippines2.94.61.4–0.95.21.3–2.927.614.613.47.1
    Thailand–0.21.62.2–2.21.90.214.311.313.55.92.0
    Europe, Middle East, & Africa
    Bulgaria–0.63.52.6–0.34.02.25.125.712.210.28.9
    Cõte d’Ivoire–1.47.212.9–14.316.7–20.230.5–20.734.812.9
    Egypt–0.33.63.8–2.23.21.918.514.46.8
    Hungary–1.26.11.4–1.51.5–0.19.810.412.33.71.2
    Lebanon–2.03.23.80.83.81.38.96.214.119.59.9
    Morocco1.31.60.70.41.10.15.511.17.210.22.4
    Nigeria–0.59.15.4–3.67.22.85.336.33.355.811.9
    Pakistan–0.32.0–37.75.01.931.3–0.2–33.3
    Poland5.35.4–4.55.91.015.910.614.23.77.5
    Russia0.99.24.7–6.55.87.654.955.835.922.411.5
    South Africa–1.85.94.9–4.45.52.88.516.222.99.68.8
    Tunisia–1.46.25.1–4.75.82.713.38.7
    Turkey–2.36.04.2–10.112.74.31.122.521.130.810.0
    Ukraine2.33.52.2–5.04.85.357.121.019.87.2
    Latin–2.16.63.1–5.910.95.412.5–12.46.833.013.4
    Non-Latin–0.16.33.8–5.06.54.118.228.821.017.79.2
    Source: JPMorgan Chase & Co.

    From 1990 or initiation of the index.

    Table 13.Emerging Market Bond Index: EMBI Global Yield Spreads
    2005 End of Period2004 End of PeriodEnd of Period12-Month High12-Month LowAll-Time High1All-Time Low1
    Q1Q2Q1Q2Q3Q420002001200220032004
    Composite23742974144824093477357287254033474832971,631297
    Latin America
    Argentina25,0754624,8405,0875,3894,5277705,3636,3425,4854,5276,1944627,222381
    Brazil4584095546464663767488641,4604593766443722,451372
    Chile7160918378642201751769064875726057
    Colombia4073313794834073327555086334273324913231,076261
    Dominican Republic6794411,3381,7301,0798244464991,1418241,7504331,750304
    Ecuador6778087019527786901,4151,2331,8017996909605924,764592
    El Salvador242261255274276245411284245299221434217
    Mexico1911811842181891743913063292011742171521,149152
    Panama301258334365351274501404446324274369236769236
    Peru2882523554503402396875216093252394562291,061229
    Uruguay4304065767104973882841,2286363887053401,982251
    Venezuela4544606476434904039581,1301,1315864036403882,658388
    Asia
    China53546567755716099845857764736439
    Malaysia95861131291047823720721210078129761,14176
    Philippines431450480448456457644466522415457508385993300
    Thailand4848697664611731321286761983195131
    Europe, Middle East, & Africa
    Bulgaria87841651371157777243329117777138621,67962
    Cõte d’Ivoire3,1583,2182,7983,2732,9553,1212,4432,4183,1953,0133,1213,4082,9413,408582
    Egypt63791331301271013603251311011504764647
    Hungary6160294410321369352283269–2196–29
    Lebanon2973794003463323343386457764213344152921,082111
    Morocco1861441641681651705845183901601702011311,606128
    Nigeria5013895045914914571,8071,1031,9464994575983892,937389
    Pakistan2042292893132702331,1152712892333231972,2250
    Poland4858727264692411951857669783941017
    Russia2091622563042982131,1726694782572133301607,063160
    South Africa126931351681431024183192501521021728575785
    Tunisia1076713214411591273146911554839448
    Turkey3112953164653232648037026963092644572361,196236
    Ukraine2142042943583332551,9539406712582553931672,314167
    Latin4633375316004924157028889815184155993371,532337
    Non-Latin2462342573162892397915234442482393222091,812209
    Period on Period Percent Change
    2005 End of Period2004 End of PeriodEnd of Period12-Month High12-Month LowAll-Time High1All-Time Low1
    Q1Q2Q1Q2Q3Q420002001200220032004
    Composite227–771168–73–62–16–7–3–322–56
    Latin America
    Argentina2548–4,613–645247302–8622374,593979–857–958
    Brazil82–499592–180–90110116596–1,001–83
    Chile7–111–8–5–1481–451–86–26
    Colombia75–76–48104–76–75339–247125–206–95
    Dominican Republic–145–238197392–651–25553642–317
    Ecuador–13131–98251–174–88–1,938–182568–1,002–109
    El Salvador–319–29192–31–127–39
    Mexico17–10–1734–29–1530–8523–128–27
    Panama27–431031–14–7791–9742–122–50
    Peru49–363095–110–101244–16688–284–86
    Uruguay42–24–60134–213–109944–592–248
    Venezuela51661–4–153–87901721–545–183
    Asia
    China–41728–1835–61–15–26–1
    Malaysia17–91316–25–2665–305–112–22
    Philippines–261965–3281334–17856–10742
    Thailand–13027–12–39–41–4–61–6
    Europe, Middle East, & Africa
    Bulgaria10–3–12–28–22–38146–339–142–114–100
    Cõte d’Ivoire3760–215475–3181661,051–25777–182108
    Egypt–38162–3–3–26–35–194–30
    Hungary29–1115–342219–43–41–244
    Lebanon–3782–21–54–142119307131–355–87
    Morocco16–4244–35204–66–128–23010
    Nigeria44–112587–100–34770–704843–1,447–42
    Pakistan–2925024–43–37–84418–56
    Poland–2110–40–8529–46–10–109–7
    Russia–4–47–148–6–85–1,260–503–191–221–44
    South Africa24–33–1733–25–41141–99–69–98–50
    Tunisia16–40–1412–29–24–127–55
    Turkey47–167149–142–59360–101–6–387–45
    Ukraine–41–103664–25–78–1,013–269–413–3
    Latin48–1261369–108–7710418693–463–103
    Non-Latin7–12959–27–50–222–268–79–196–9
    Source: JPMorgan Chase & Co.

    From 1990 or initiation of the index.

    With the completion of Argentina’s debt restructuring, JPMorgan Chase & Co. rebalanced its family of emerging market bond indices in June; defaulted Argentine securities were replaced by performing ones.

    Table 14.Emerging Market External Financing: Total Bonds, Equities, and Loans(In millions of U.S. dollars)
    20042005
    199920002001200220032004Q3Q4Q1Q2
    Total163,569.6216,402.7162,137.7147,295.6199,265.6290,820.165,767.384,662.469,352.981,107.3
    Africa4,707.29,382.86,992.37,019.012,306.311,608.15,441.11,332.4950.41,999.0
    Algeria50.0150.075.0271.7105.9
    Angola455.0350.01,542.02,900.02,350.08.7
    Botswana22.5
    Burkina Faso11.0
    Cameroon53.8100.0
    Chad400.0
    Congo, Dem. Rep. of20.8
    Cõte d’Ivoire179.015.0100.0100.0
    Djibouti40.040.0
    Ethiopia40.040.0
    Gabon22.022.0
    Ghana30.0320.0300.0420.0650.0870.0870.0
    Guinea70.070.0
    Kenya7.580.2134.0135.161.573.5
    Malawi4.8
    Mali150.4287.6288.9288.9
    Mauritius160.0
    Morocco322.256.4136.1474.71,615.3464.5580.6
    Mozambique200.035.5222.4
    Namibia35.050.0
    Niger27.0
    Nigeria90.0100.0960.0593.0225.0195.077.2
    Senegal40.0
    Seychelles50.0150.080.0
    South Africa3,423.48,698.84,646.74,058.17,837.43,798.51,184.2558.1762.3877.5
    Sudan
    Tanzania135.0
    Tunisia352.694.3533.0740.5485.2924.4349.991.2490.9
    Zambia30.0
    Zimbabwe150.0
    Asia55,958.685,881.067,483.467,201.387,968.3136,609.329,516.940,141.729,912.335,416.2
    Bangladesh176.8176.8
    Brunei129.0
    China3,461.823,063.45,567.38,891.613,589.823,881.93,104.56,023.73,760.39,003.2
    Hong Kong SAR11,488.321,046.418,307.312,602.19,055.719,142.04,246.48,737.75,376.03,477.7
    India2,376.22,224.22,382.21,380.84,094.112,921.92,951.93,396.53,887.94,240.1
    Indonesia1,465.31,283.1964.9974.05,109.93,636.1175.01,208.0172.51,157.9
    Korea13,542.314,230.417,021.014,693.517,237.026,469.97,399.97,591.77,708.58,865.2
    Lao P.D.R.71.4210.0140.01,000.0
    Macao SAR29.5357.0357.0
    Malaysia5,177.24,506.44,432.45,597.35,729.27,731.01,190.62,055.91,770.91,258.6
    Marshall Islands34.7
    Mongolia30.0
    Pakistan182.5289.19.3800.0286.2417.8
    Papua New Guinea232.4153.7
    Philippines7,181.75,021.93,658.85,458.15,453.56,227.02,136.6293.22,385.8750.0
    Singapore4,338.76,079.710,383.63,810.06,792.79,971.13,221.13,457.41,147.61,414.5
    Sri Lanka23.0100.0105.0186.0135.0100.0
    Taiwan Province of China4,019.96,703.53,794.010,959.318,149.320,952.94,095.25,717.72,654.42,229.8
    Thailand2,551.71,572.5684.41,927.02,357.23,882.7524.71,243.1732.21,556.1
    Vietnam100.020.0383.551.0114.0114.045.3
    Europe26,191.537,021.722,787.729,566.947,854.868,105.311,592.223,591.513,677.720,863.9
    Azerbaijan77.216.02,070.4997.018.241.020.7
    Belarus36.021.421.4
    Bulgaria53.98.9242.31,260.8381.31,667.619.7788.429.5318.4
    Croatia1,504.91,498.71,766.01,425.42,026.01,267.7149.2439.3570.8506.1
    Cyprus288.586.3633.0547.9648.2
    Czech Republic540.3127.1564.6453.44,349.51,322.0346.9355.7235.9292.6
    Estonia289.2412.7202.1292.6507.7257.8128.966.4
    Georgia6.0
    Gibraltar65.080.0
    Hungary3,471.21,308.81,364.71,040.23,774.84,196.2442.11,658.01,698.9
    Kazakhstan417.0429.6573.5743.51,535.03,897.2906.0997.21,164.81,453.0
    Kyrgyz Republic95.0
    Latvia288.923.0212.174.670.7706.4145.0208.3235.9275.9
    Lithuania959.7683.8247.3374.3431.7155.072.5386.172.5
    Macedonia47.6110.110.317.482.5
    Malta57.085.0114.7392.7150.0242.7
    Moldova40.07.02.05.0
    Poland3,780.75,252.94,836.65,913.27,818.11,948.6443.8831.7136.8752.0
    Romania176.0594.41,347.21,442.21,828.21,693.9404.4345.3781.4123.0
    Russia166.83,950.73,200.18,496.012,081.229,116.74,227.911,316.16,237.19,727.8
    Serbia and Montenegro19.410.9
    Slovak Republic994.71,466.7219.9143.1940.6247.330.586.530.5135.2
    Slovenia687.7672.7827.2309.3394.82,756.3717.7658.3807.5204.4
    Tajikistan1.21.2
    Turkey11,900.020,385.46,405.16,376.09,413.015,830.12,538.85,350.02,667.14,936.9
    Ukraine290.715.0514.01,400.0411.863.066.9346.6156.8
    Uzbekistan142.040.030.046.038.728.010.03.614.3
    Middle East15,387.414,999.711,020.310,685.48,368.121,434.13,092.06,500.17,491.311,546.5
    Bahrain361.11,391.0207.0665.01,800.01,767.0442.01,075.0220.01,539.7
    Egypt1,533.7919.42,545.0670.0155.01,138.7221.0150.0217.3
    Iran, I.R. of692.0757.7887.02,666.4700.01,942.739.9225.91,255.2
    Iraq107.8
    Israel3,719.02,908.51,602.6344.4750.03,514.0341.11,150.1954.681.8
    Jordan60.080.9199.4199.4
    Kuwait147.5250.0770.0750.0365.01,282.5157.5825.0220.03,325.0
    Lebanon1,421.41,752.43,300.0990.0160.03,263.5620.51,375.0500.0
    Libya50.0
    Oman356.8685.02,332.0907.81,328.6175.0455.0753.01,460.0
    Qatar2,000.01,980.0913.01,536.7880.82,042.7198.7722.0
    Saudi Arabia4,374.82,200.9275.0280.0569.52,214.0816.0600.0950.02,004.0
    United Arab Emirates781.02,045.0520.7370.02,080.02,741.0500.0175.02,880.71,696.7
    Latin America61,324.969,117.653,854.032,823.042,768.153,063.416,125.113,096.717,321.211,281.7
    Argentina17,844.416,648.53,423.9824.2160.01,771.4506.0150.0135.0
    Bolivia20.090.0116.0116.0100.0
    Brazil12,951.923,238.219,532.910,925.612,001.215,593.65,062.52,625.84,509.83,380.6
    Chile8,031.75,782.53,935.32,959.64,699.06,439.81,535.93,134.7396.11,098.5
    Colombia3,555.83,093.24,895.02,096.01,911.31,543.8500.0543.8517.1335.0
    Costa Rica300.0250.0400.0250.0490.0310.025.5
    Dominican Republic74.0500.0600.069.81.9
    Ecuador31.1258.070.4140.5101.09.1
    El Salvador223.050.01,263.51,261.5348.5286.5286.525.0375.0
    Grenada166.5110.0135.032.5180.5140.540.0
    Guadeloupe17.4
    Guatemala222.0505.0325.044.0300.0439.3330.050.0
    Honduras169.0169.0
    Jamaica421.0726.5345.049.6903.2344.1186.2208.1500.0
    Mexico14,099.515,313.413,823.510,040.616,992.318,788.26,040.64,114.49,576.63,327.9
    Nicaragua22.0
    Paraguay55.070.0
    Peru1,618.4465.4137.51,993.01,375.01,475.7805.7400.0
    St. Lucia20.0
    Trinidad and Tobago230.0301.070.0303.046.0415.0115.0200.0100.0
    Uruguay465.0602.11,147.4400.0500.0
    Venezuela1,561.72,263.33,417.51,015.03,672.54,399.11,500.0774.11,327.51,604.2
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Dealogic.
    Table 15.Emerging Market External Financing: Bond Issuance(In millions of U.S. dollars)
    20042005
    199920002001200220032004Q3Q4Q1Q2
    Developing Countries82,359.480,475.489,036.961,647.498,777.6128,097.831,415.534,856.727,041.729,073.7
    Africa2,345.51,485.82,109.62,161.15,511.92,495.4214.793.21,368.4
    Mauritius160.0
    Morocco151.5464.9
    South Africa1,804.71,485.81,647.71,511.14,690.01,950.9214.7493.2877.5
    Tunisia229.3462.0650.0357.0544.5490.9
    Asia23,424.724,501.435,869.222,532.735,778.852,425.713,921.812,673.511,138.210,528.8
    China1,060.01,770.72,341.9602.82,034.24,575.32,442.82,093.81,208.3
    Hong Kong SAR7,124.87,058.910,458.61,951.62,625.64,209.41,775.61,262.82,930.8471.4
    India100.0100.099.3153.0450.04,452.1814.01,775.01,018.1605.0
    Indonesia125.0375.0609.01,363.538.21,000.0
    Korea4,905.87,653.07,756.36,705.511,531.316,965.53,490.54,233.44,238.34,161.4
    Malaysia2,062.41,419.72,150.01,880.0962.52,514.5125.0414.5503.1400.0
    Pakistan500.0
    Philippines4,751.22,467.31,842.44,773.83,799.64,458.11,658.11,750.0750.0
    Singapore2,147.12,333.88,664.7562.14,336.84,627.62,616.81,110.1167.9435.1
    Sri Lanka100.0100.0
    Taiwan Province of China475.01,698.02,152.45,480.89,129.77,259.7599.01,645.7380.0405.0
    Thailand798.4278.648.0300.01,400.0400.0150.01,092.6
    Europe13,872.814,202.511,558.614,997.024,411.430,785.58,186.112,125.03,443.96,312.3
    Azerbaijan1,005.08.03.5
    Bulgaria53.9223.41,247.8808.119.7247.929.0
    Croatia601.2858.0934.0847.5983.6588.6149.2439.3197.7200.1
    Cyprus288.5480.5479.8648.2
    Czech Republic421.750.7428.43,168.4956.5346.9355.7235.9
    Estonia84.9335.765.5292.6323.3128.9
    Hungary2,410.5540.81,247.870.52,211.41,498.8197.8490.4763.1
    Kazakhstan300.0350.0250.0209.0100.01,868.2766.8878.2317.0530.0
    Latvia236.7180.8353.2145.0160.090.9115.9
    Lithuania531.5376.2222.4355.6431.772.572.5376.1
    Macedonia17.417.4
    Poland1,652.61,553.52,773.72,679.94,301.2541.436.0309.3
    Romania259.5908.61,062.2813.6847.0159.763.8577.66.1
    Russia75.01,352.73,391.54,005.012,937.03,480.94,719.7900.83,595.0
    Slovak Republic800.2978.3219.9143.1861.3117.030.550.071.9
    Slovenia439.1384.7490.030.21,364.5641.551.6153.9149.1
    Turkey5,761.28,490.82,158.73,259.85,253.87,561.52,185.14,477.6472.4459.3
    Ukraine290.7499.01,310.0119.963.056.9121.680.0
    Middle East4,409.84,670.65,920.73,706.61,860.09,035.5620.52,937.01,675.02,399.7
    Bahrain209.1188.5325.0750.0292.042.0399.7
    Egypt100.01,500.0
    Iran, I.R. of986.3
    Israel1,679.21,329.71,120.7344.4750.02,520.0875.0
    Jordan80.9145.0145.0
    Kuwait750.0200.0500.0500.0500.0
    Lebanon1,421.41,752.43,300.0990.0160.03,263.5620.51,375.0500.0
    Oman250.0
    Qatar1,000.01,400.0665.0
    Saudi Arabia600.0
    United Arab Emirates230.01,400.01,075.01,000.0
    Latin America38,306.735,615.233,578.818,250.031,215.533,355.78,472.47,121.210,291.48,464.5
    Argentina14,182.813,024.81,500.5100.01,115.4100.0150.0
    Brazil8,585.811,382.112,238.86,375.510,709.99,528.43,288.11,755.53,489.82,565.3
    Chile1,763.8679.71,536.01,728.92,900.02,350.01,200.0400.0
    Colombia1,675.61,547.24,263.31,000.01,765.01,543.8500.0543.8447.1335.0
    Costa Rica300.0250.0250.0250.0490.0310.0
    Dominican Republic500.0600.0
    El Salvador150.050.0353.51,251.5348.5286.5286.5375.0
    Grenada100.0
    Guatemala325.0300.0380.0330.0
    Jamaica421.0690.7300.0806.9247.8186.2500.0
    Mexico9,854.07,078.49,231.74,914.19,082.111,369.02,320.01,770.04,380.02,185.0
    Peru1,930.01,250.01,305.7805.7400.0
    Trinidad and Tobago230.0250.0100.0100.0
    Uruguay350.0442.61,106.1400.0500.0
    Venezuela1,214.7489.41,583.23,670.04,260.01,500.0760.01,324.51,604.2
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Dealogic.
    Table 16.Emerging Market External Financing: Equity Issuance(In millions of U.S. dollars)
    20042005
    199920002001200220032004Q3Q4Q1Q2
    Developing Countries23,187.441,772.811,245.916,359.428,295.744,941.95,566.715,350.610,532.715,170.2
    Africa658.7103.3150.9340.5977.41,746.3564.531.0580.6
    Côte d’Ivoire100.0100.0
    Morocco56.46.81,615.3464.5580.6
    South Africa658.746.9144.1340.5977.431.031.0
    Sudan
    Asia18,271.831,567.79,591.512,411.424,679.635,203.34,079.010,763.17,776.411,533.3
    China1,477.420,239.72,810.42,546.06,413.214,528.3213.62,674.81,942.67,442.9
    Hong Kong SAR3,370.03,088.6297.12,857.73,480.15,152.6584.53,127.9892.760.4
    India874.4916.7467.2264.81,299.73,937.6683.4688.11,761.42,053.2
    Indonesia522.228.2347.2281.01,008.4535.2177.4147.574.1
    Korea6,590.6784.83,676.41,553.71,222.63,223.32,191.6375.5
    Macao SAR29.5
    Malaysia15.4891.2618.2887.2283.1131.2215.2153.6
    Papua New Guinea232.4153.7
    Philippines221.7194.611.318.018.0535.8
    Singapore1,725.62,202.2625.8891.61,168.72,472.724.21,809.9444.7354.5
    Taiwan Province of China2,500.43,951.51,126.63,057.98,276.33,350.098.61,256.01,404.11,170.7
    Thailand757.3132.0225.356.31,038.71,098.4879.856.9223.9
    Europe1,411.63,339.8259.41,612.41,811.35,261.288.73,905.01,856.71,749.0
    Croatia22.3
    Czech Republic824.6174.4101.5
    Estonia190.366.4
    Hungary529.219.113.2884.7535.0
    Latvia22.7
    Lithuania150.5
    Poland636.3358.9217.3604.9841.4734.1112.4406.7
    Russia55.8387.7237.11,301.0368.72,674.42,408.51,744.31,154.5
    Turkey2,423.871.4686.388.7227.4
    Ukraine19.9
    Middle East2,084.01,618.186.8868.6221.1166.1404.6299.1
    Egypt89.2319.4141.0141.0217.3
    Israel1,994.81,298.786.8624.0221.125.1404.681.8
    Oman23.6
    Saudi Arabia80.0
    Latin America761.35,143.91,157.21,995.0827.41,862.5613.4485.4495.01,008.2
    Argentina349.6393.134.4
    Brazil161.43,102.51,122.91,148.5287.41,455.4452.5485.4495.0665.3
    Chile266.3160.9
    Dominican Republic74.0
    Mexico162.01,574.3846.6540.0140.8342.9
    Peru88.4
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Dealogic.
    Table 17.Emerging Market External Financing: Loan Syndication(In millions of U.S. dollars)
    20042005
    199920002001200220032004Q3Q4Q1Q2
    Total58,022.894,154.561,854.969,388.972,192.3117,780.528,785.134,455.131,778.536,863.4
    Africa1,703.07,793.74,731.84,517.45,817.17,366.44,661.91,301.4457.250.0
    Algeria50.0150.075.0271.7105.9
    Angola455.0350.01,542.02,900.02,350.08.7
    Botswana22.5
    Burkina Faso11.0
    Cameroon53.8100.0
    Chad400.0
    Congo, Dem. Rep. of20.8
    Cõte d’Ivoire179.015.0
    Djibouti40.040.0
    Etdiopia40.040.0
    Gabon22.022.0
    Ghana30.0320.0300.0420.0650.0870.0870.0
    Guinea70.070.0
    Kenya7.580.2134.0135.161.573.5
    Malawi4.8
    Mali150.4287.6288.9288.9
    Morocco170.6129.39.8
    Mozambique200.035.5222.4
    Namibia35.050.0
    Niger27.0
    Nigeria90.0100.0960.0593.0225.0195.077.2
    Senegal40.0
    Seychelles50.0150.080.0
    Soutd Africa960.07,166.12,855.02,206.52,170.01,816.6969.5527.1269.1
    Tanzania135.0
    Tunisia123.494.371.090.5128.2379.9349.991.2
    Zambia30.0
    Zimbabwe150.0
    Asia14,262.029,812.022,022.732,257.327,509.948,980.311,516.116,705.110,997.713,354.1
    Bangladesh176.8176.8
    Brunei129.0
    China924.41,053.1415.05,742.85,142.44,778.3448.11,255.11,817.7352.0
    Hong Kong SAR993.510,898.97,551.67,792.92,950.09,780.01,886.34,347.01,552.52,945.9
    India1,401.81,207.61,815.7963.12,344.44,532.21,454.5933.41,108.41,581.9
    Indonesia943.11,254.9492.6318.03,492.51,737.4175.0992.425.083.8
    Korea2,046.05,792.65,588.26,434.34,483.06,281.11,717.83,358.33,094.74,703.8
    Lao P.D.R.71.4210.0140.01,000.0
    Macao SAR357.0357.0
    Malaysia3,114.83,086.72,267.02,826.14,148.64,329.3782.51,510.21,052.6705.0
    Marshall Islands34.7
    Mongolia30.0
    Pakistan182.5289.19.3300.0286.2417.8
    Philippines2,208.92,360.01,816.4673.01,653.81,750.9478.5275.2100.0
    Singapore466.01,543.71,093.22,356.31,287.22,870.8580.1537.4535.0624.9
    Sri Lanka23.0100.0105.0186.035.0
    Taiwan Province of China1,044.51,054.0515.02,420.5743.310,343.23,397.62,816.0870.3654.1
    Tdailand996.01,440.5180.51,822.71,018.51,384.3124.7363.3525.3239.6
    Vietnam100.020.0383.551.0114.0114.045.3
    Europe10,907.119,479.310,969.712,957.521,632.132,058.63,317.47,561.58,377.112,802.6
    Azerbaijan77.216.01,065.4997.010.241.017.2
    Belarus36.021.421.4
    Bulgaria8.918.913.0381.3859.5540.529.5289.4
    Croatia903.6640.7809.8577.81,042.5679.1373.1306.0
    Cyprus86.3152.568.1
    Czech Republic118.6127.1513.925.0356.5191.1191.1
    Estonia14.077.0136.6184.3128.9128.9
    Georgia6.0
    Gibraltar65.080.0
    Hungary531.6748.9116.9969.71,550.21,812.7244.3632.6935.8
    Kazakhstan117.079.6323.5534.51,435.02,029.0139.2119.0847.8923.0
    Kyrgyz Republic95.0
    Latvia52.223.031.351.970.7353.248.3145.0160.0
    Lithuania428.2157.224.918.882.510.072.5
    Macedonia47.692.710.382.5
    Malta57.085.0114.7392.7150.0242.7
    Moldova40.07.02.05.0
    Poland1,491.93,340.52,062.93,016.02,912.1565.8443.861.624.436.0
    Romania176.0334.9438.6380.01,014.6846.9244.7281.5203.8116.9
    Russia111.03,488.11,610.33,803.57,707.513,505.3747.04,187.93,592.04,978.3
    Serbia and Montenegro19.410.9
    Slovak Republic194.5488.379.3130.336.530.563.3
    Slovenia248.6288.0337.2279.0394.81,391.876.2606.7653.655.3
    Tajikistan1.21.2
    Turkey6,138.89,470.94,246.43,044.84,159.27,582.3265.0645.02,194.74,477.6
    Ukraine15.015.090.0291.910.0225.056.9
    Uzbekistan142.040.030.046.038.728.010.03.614.3
    Middle East8,893.78,711.05,012.76,978.86,508.111,530.02,250.43,397.05,411.78,847.7
    Bahrain152.01,202.5207.0340.01,050.01,475.0442.01,033.0220.01,140.0
    Egypt1,344.5600.01,045.0670.0155.0997.780.0150.0
    Iran, I.R. of692.0757.7887.01,680.1700.01,942.739.9225.91,255.2
    Iraq107.8
    Israel45.0280.0395.0370.0120.0250.0550.0
    Jordan60.054.454.4
    Kuwait147.5250.0770.0165.0782.5157.5325.0220.02,825.0
    Libya50.0
    Oman356.8685.02,332.0907.81,055.0175.0455.0753.01,460.0
    Qatar1,000.0580.0913.01,536.7880.81,377.7198.7722.0
    Saudi Arabia4,374.82,200.9275.0280.0569.52,134.0816.0600.0350.02,004.0
    United Arab Emirates781.02,045.0520.7140.02,080.01,341.0500.0175.01,805.7696.7
    Latin America22,257.028,358.519,118.012,677.910,725.217,845.27,039.35,490.16,534.81,809.0
    Argentina3,312.13,230.61,889.0824.260.0656.0406.0135.0
    Bolivia20.090.0116.0116.0100.0
    Brazil4,204.78,753.66,171.33,401.71,003.94,609.81,321.9384.9525.0150.0
    Chile6,267.95,102.82,399.31,230.71,799.03,823.51,375.01,934.7396.1698.5
    Colombia1,880.21,546.0631.71,096.0146.370.0
    Costa Rica150.025.5
    Cuba69.81.9
    Dominican Republic31.1258.070.4140.5101.09.1
    Ecuador73.0910.010.025.0
    El Salvador166.5110.0135.032.5180.5140.540.0
    Guadeloupe17.4
    Guatemala222.0505.044.059.350.0
    Honduras169.0169.0
    Jamaica35.845.049.696.396.3208.1
    Mexico4,083.66,660.74,591.84,280.07,370.27,278.43,720.62,344.45,196.6800.0
    Nicaragua22.0
    Paraguay55.070.0
    Peru1,530.0465.4137.563.0125.0170.0
    St. Lucia20.0
    Trinidad and Tobago51.070.0303.046.0315.0115.0200.0
    Uruguay115.0159.541.3
    Venezuela347.01,773.91,834.31,015.02.5139.114.13.0
    Source: Data provided by the Bond, Equity and Loan database of the International Monetary Fund sourced from Dealogic.
    Table 18.Equity Valuation Measures: Dividend-Yield Ratios
    20042005
    199920002001200220032004Q3Q4Q1Q2
    Argentina3.294.625.163.421.081.001.081.000.891.45
    Brazil2.953.184.935.513.464.435.024.433.654.05
    Chile1.882.332.312.761.763.011.893.013.142.90
    China3.140.951.952.412.192.262.392.262.312.82
    Colombia6.7811.125.634.783.922.522.792.522.582.76
    Czech Republic1.360.952.282.366.854.295.084.293.561.80
    Egypt3.925.756.487.534.691.982.341.981.441.44
    Hong Kong SAR2.312.583.253.852.822.743.002.743.093.11
    Hungary1.141.461.301.400.941.952.301.951.672.36
    India1.251.592.031.811.471.531.791.531.561.54
    Indonesia0.913.053.654.173.833.233.543.233.053.19
    Israel1.872.262.241.471.101.431.301.431.862.04
    Jordan4.244.543.513.772.361.571.911.571.241.15
    Korea0.812.051.541.381.822.402.502.402.612.58
    Malaysia1.151.701.872.042.382.222.282.222.452.77
    Mexico1.271.631.982.301.831.872.141.871.982.03
    Morocco2.493.593.974.844.183.613.543.613.814.64
    Pakistan4.005.1216.0110.958.637.047.467.046.115.79
    Peru2.863.383.162.371.753.282.583.283.456.10
    Philippines1.081.441.431.971.431.651.611.651.762.15
    Poland0.700.681.871.841.281.281.721.281.193.04
    Russia0.140.921.111.872.383.122.503.122.162.28
    Singapore0.861.401.802.272.032.252.292.252.262.60
    South Africa2.092.753.473.833.222.632.742.633.013.09
    Sri Lanka3.225.594.793.352.512.632.622.632.022.07
    Taiwan Province of China0.971.711.421.601.862.953.132.953.073.51
    Thailand0.702.132.022.481.693.033.123.033.903.84
    Turkey0.761.911.151.350.891.932.221.932.103.11
    Venezuela5.805.053.892.383.685.755.985.755.606.33
    Emerging Markets1.522.092.302.432.252.612.742.612.652.90
    EM Asia1.011.711.731.811.962.482.592.482.642.89
    EM Latin America2.282.693.373.642.613.303.563.302.983.26
    EM Europe and Middle East1.161.841.691.711.812.152.172.151.952.38
    ACWI Free1.271.461.722.251.992.082.152.082.152.17
    Data are from Morgan Stanley Capital International. The countries above include the 27 constituents of the Emerging Markets index as well as Hong Kong SAR and Singapore. Regional breakdowns conform to Morgan Stanley Capital International conventions. All indices reflect investible opportunities for global investors by taking into account restrictions on foreign ownership. The indices attempt to achieve an 85 percent representation of freely floating stocks.
    Table 19.Equity Valuation Measures: Price-to-Book Ratios
    20042005
    199920002001200220032004Q3Q4Q1Q2
    Argentina1.471.040.861.201.792.242.162.242.502.44
    Brazil1.241.181.111.241.811.841.821.841.831.82
    Chile1.691.491.391.151.551.781.671.781.932.00
    China0.692.751.881.302.161.981.881.981.981.95
    Colombia0.710.490.531.181.341.921.641.921.871.89
    Czech Republic0.801.000.810.841.061.641.351.641.891.89
    Egypt3.572.321.391.052.173.893.383.895.376.41
    Hong Kong SAR2.271.671.381.101.471.711.561.711.551.63
    Hungary3.352.332.031.911.972.622.432.622.962.79
    India3.552.712.132.153.793.633.133.633.513.61
    Indonesia2.411.032.722.232.263.102.503.103.282.96
    Israel2.533.042.221.742.462.622.232.622.542.45
    Jordan1.031.021.381.261.983.012.313.013.884.89
    Korea1.420.821.331.211.521.361.381.361.441.44
    Malaysia1.981.591.761.541.851.951.861.951.831.88
    Mexico2.311.911.991.772.202.582.382.582.452.48
    Morocco3.532.561.791.401.502.421.912.422.322.52
    Pakistan1.481.410.882.042.312.392.152.392.703.01
    Peru1.921.131.291.842.772.282.392.282.362.22
    Philippines1.641.271.110.851.401.611.561.611.781.90
    Poland2.122.101.331.371.722.111.822.112.222.22
    Russia2.410.901.271.221.331.111.391.111.391.66
    Singapore2.562.051.631.261.621.701.651.701.711.77
    South Africa2.752.681.811.721.952.432.012.432.482.49
    Sri Lanka1.000.600.831.221.521.431.451.431.621.78
    Taiwan Province of China3.461.871.981.532.101.881.821.881.801.81
    Thailand2.041.511.681.832.942.412.342.412.312.20
    Turkey9.212.723.801.762.021.921.661.921.791.87
    Venezuela0.630.670.480.871.411.631.651.631.561.18
    Emerging Markets2.121.641.591.451.901.911.821.911.941.96
    EM Asia2.091.531.681.411.951.811.751.811.811.83
    EM Latin America1.571.361.351.441.902.051.972.052.032.03
    EM Europe and Middle East3.412.151.701.421.671.781.721.781.972.05
    ACWI Free4.233.462.672.072.462.462.342.462.422.45
    Data are from Morgan Stanley Capital International. The countries above include the 27 constituents of the Emerging Markets index as well as Hong Kong SAR and Singapore. Regional breakdowns conform to Morgan Stanley Capital International conventions. All indices reflect investible opportunities for global investors by taking into account restrictions on foreign ownership. The indices attempt to achieve an 85 percent representation of freely floating stocks.
    Table 20.Equity Valuation Measures: Price-Earnings Ratios
    20042005
    199920002001200220032004Q3Q4Q1Q2
    Argentina24.8220.6919.13–12.8613.7247.24244.4747.2453.1615.18
    Brazil18.6412.838.4911.2310.3410.809.8910.8010.249.45
    Chile46.4031.9618.0217.1630.8123.0625.0423.0623.6622.55
    China14.9740.6014.0912.1417.1113.8313.1513.8313.5112.66
    Colombia20.30–103.4464.919.558.9417.6710.5617.6717.1617.54
    Czech Republic–42.0416.499.2110.4012.4926.6418.1826.6423.2020.40
    Egypt16.549.356.287.3310.9014.2313.8814.2319.6726.93
    Hong Kong SAR30.817.6420.4714.9120.0019.9019.5019.9018.0218.37
    Hungary18.5014.8219.3410.0613.1111.2611.8911.2613.7412.15
    India22.8415.6113.8413.5618.9617.6515.6317.6516.1617.05
    Indonesia–48.7318.688.377.1410.3712.9111.1412.9113.19