Alternatively, markets may be reacting to different shocks, or to changes to the capital structure of firms; over the last few years, lengthening debt maturities and increases in liquid asset holdings may have supported debt holders at the expense of equity holders. Or, as in the 1950s, perceptions may shift as a consequence of recent events.
4  BIS Review 101/2007  Graph 4  The rapid growth that we have witnessed in east Asian equity markets may pose a risk. Despite the Asian region being a net creditor, net private capital inflows have been positive over the past few years, partly reflecting strong equity inflows.