In the fall of 2008, however, GSE senior debt spreads widened significantly to more than 500 basis points. Market participants grew increasingly skeptical of the GSEs' financial and operational wherewithal and were uncertain of the depth of government support.
3  Of course, if the sharp reductions in asset values are fleeting, these second-round effects could be quite limited. BIS central bankers’ speeches  1  turnover to decline even with no change in market liquidity.