In view of this risk, Federal Reserve supervisors are monitoring these consumer loan segments for signs of spillover from residential mortgage problems, particularly in regions showing homeowner distress, and are paying particular attention to the securitization market for credit card loans. Commercial real estate Commercial real estate is another area that requires close supervisory attention.
The home country bias for the bond and equity investor is to a large measure due to exchange rate risk; perhaps even the hedging market too has a home country bias. We have to make all efforts to bring that market onshore. But the market that can entice them has to be complete and flexible with less restrictions on entry or exit.