Recent Developments in Financial Markets-Clementi

In a speech delivered at the Banca D'Italia on Mar 9, 2001, David Clementi, deputy governor of the Bank of England, discusses some recent developments in financial markets and their possible impact on financial stability.

Mr Clementi highlights the rapid change in the instruments and markets used for the transfer of credit risk and in particular credit derivatives. A survey by the British Bankers' Association in July 2000 found that outstanding notional principal of all credit derivatives had

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