Global Financial Stability Report, March 2003

This March 2003 issue of the Global Financial Stability Report highlights that the supportive stance of monetary policy in the major economies, coupled with more risk-averse behavior by both institutional and retail investors, has contributed to a sizable buildup of cash positions. A partial mobilization of these cash positions in the fourth quarter of 2002 helped fuel a short-lived stock market rally, led to a narrowing of credit spreads on mature and emerging bonds, and contributed to an increase in flows to emerging market borrowers.