DMOs no longer pay concession premiums and yield spreads between European countries have narrowed. The market has been able to absorb the considerable higher volume of government debt issuance better than expected. 2  BIS Review 159/2009  Issuance strategies The challenging issuance climate and uncertainty about future borrowing requirements have prompted several DMOs to pursue more flexible issuance strategies.
The spectacular losses suffered by American International Group, Inc., or AIG, on its derivatives positions, and the resulting concerns about the potential effect of AIG’s failure on its major derivatives counterparties, serve as particularly apt reminders of the wider failures and weaknesses that were revealed by the crisis. The threats posed were global, and the response was global as well.