Nevertheless, the shift in relative pricing noted earlier suggests that the asset-backed segment is, and is likely to remain, a smaller share of the market than it was prior to the crisis. The decline in AAA asset-backed issuance has only had a modest effect on the credit composition of the market, being offset by strong AAA Kangaroo issuance.
Conclusion Conditions in financial markets have fluctuated through a wide range over the past three years. Recently, conditions have been somewhat fragile but considerably improved from late 2008 and early 2009. The foreign exchange market has been one of the most resilient markets and has expanded rapidly over the past year.